Trading Basics
Long
When a trader buys an asset they become long the asset and hope to profit from an increase in price.
Other Trading Basics
Balance
A summarised financial result of all funds deposited in, and withdrawn from the customer’s account, and of all closed positions in that account.
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.
Asset Classes
Types of asset that have similar characteristics.
There are four broad classes: Equities, Foreign Exchange, Debt and Commodities.