SEC

Trading Basics

Other Trading Basics

Closing Trade

A trade to close a position. Most trading requires the trader to place the opposite trade to that done when opening their position.

This will crystallise the profit or loss.

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Bear Trap

When a piece of analysis points to the market falling and the price instead goes up, trapping the bears.

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Carry Trade

A forex trading strategy of borrowing funds in a low-interest rate currency and buying assets in higher yielding currency.

For years this was selling Yen to buy Dollars.

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