Trading Basics
Day Trading
A day trader attempts to make a profit by making short, sharp transactions on a day-to-day basis, rather than letting their investments mature. A day trader will try to avoid keeping any positions open overnight to avoid charges that may cut into their profits.
Other Trading Basics
Convertible Stocks
A loan that the owner can convert to ordinary shares in that company, given a set of conditions defined in the original loan.
Black Box Trading
Also referred to as automatic or algorithmic trading.
The trader does not need to see the system in operation, in effect its a black box.
Ask Price
The ask price is the level at which a seller is willing to accept a bid on a security.
The ask price is always higher than the bid price.
Also known as the offer price.
Start learning now
Learn the skills needed to trade the markets on our Trading for Beginners course.
