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
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.
Binary Bet
A binary bet offers a win or loss outcome, nothing in between.
Binary options are now banned in the EU.
CFD
Contract for difference.
An OTC financial derivative where the counterparties agree to exchange the change in a price.
No underlying assets are exchanged.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
