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
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.
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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