Trading Basics

Cut and Reverse

When a position is fully reversed and an opposing position taken in a single trade.

When a piece of analysis points to the market falling and the price instead goes up, trapping the bears.

A trade where the maximum downside is predefined, usually with a guaranteed stop-loss order.

The difference between the price the trader and buy at and the price they can sell at.

Also bid-offer spread. The wider the spread, the more the trader pays, reactively.

Learn the skills needed to trade the markets on our Trading for Beginners course.

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