Trading Basics
Warrant
The right to buy new shares at a set price in a company at a future point in time. Similar to an option which gives similar right but over existing shares.
Other Trading Basics
Cash or Spot Market
Also known as a spot market, cash markets are different to futures contracts, as commodities are traded immediately for cash at the current market price.
AIM
Alternative Investment Market. A small cap stock market in the UK.
Lighter listing rules reduce the costs for the companies listing and seeking external equity finance.
A good starting point for growth companies not quite ready for the main LSE.
Averaging Down
Once an initial long trade is place this is the practice of opening additional positions at a lower price with the view of bringing the average opening price of the position down.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
