Trading Basics
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.
Other Trading Basics
Book Building
When a new share is issued book building is the process institutions go through to gauge demand and therefore price.
This goes on before the share is available to trade on the exchange.
Balance of Trade
Also BoT. This is the difference between trade into or out of a country.
Experts and imports. It can be negative or positive and is used by traders in fundamental analysis.
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