Trading Basics

Market Capitalisation

A company’s market capitalisation is the total value of all of its outstanding shares. This can be calculated by multiplying the current number of the company’s shares that are outstanding by the market value of one share; investors then use this figure to determine a company’s size.

Other Trading Basics

Currency Pair

The exchange of two currencies.

CPI

Consumer price index, a measure of inflation excluding housing costs.

Crystallisation

When a position is closed the trader crystalises the profit or loss.

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