Trading Basics
PIT
This was the physical location where traders used to trade. Now largely redundant and replaced with virtual trading.
Other 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.
Bollinger Bands
A technical indicator developed by John Bollinger.
The bands help a trader visualise changes in price volatility.
Taught in our Technical Trading course.
Bid-Ask Spread
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.
Start learning now
Learn the skills needed to trade the markets on our Trading for Beginners course.