What is a central bank

Trading Basics

What is a central bank?

A central bank or monetary authority is a monopolised and often nationalized institution given control over the distribution of money and credit.

Other Trading Basics

Arbirtage

Simultaneously buying and selling a security at two different prices in two different markets, with the aim of making a profit without the risk of prices fluctuating.

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Basis Point

A basis point is 0.01% and is typically used when quoting interest rate changes.

A move of 0.25% is described as 25 basis points.

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