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.
Other Trading Basics
Cost of Carry
The cost to a trader of maintaining a position. This might be in form of overnight financing on simple CFD trades but can also include the costs to insure, transport or finance on more complex trades.
Contango
This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.
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