Trading Basics
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.
Other Trading Basics
Credit Rating
An entities perceived ability to repay its debt. Provided by credit rating agencies. AAA is the best credit rating.
Closing Trade
A trade to close a position. Most trading requires the trader to place the opposite trade to that done when opening their position.
This will crystallise the profit or loss.
Collateral
The resources put up by the trader to enter a trade.
Requested by the counterparty and normally in the form of cash but sometimes other liquid assets like shares.
Start learning
Learn the skills needed to trade the markets on our Trading for Beginners course.
