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

Arbitrageur

Person, or organisation that uses arbitrage as a strategy.

Bid

Traders can go short at the bid price.

The terminology is from the broker point of view, they are bidding to buy from you.

Counterparty

You need at least two parties in a financial transaction, they are counterparties.

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Learn the skills needed to trade the markets on our Trading for Beginners course.