Trading Basics
Wall Street
The street in downtown Manhattan at the heart of America’s financial industry. The term Wall Street is slang for all things finance.
Other Trading Basics
Backwardation
Backwardation occurs when a bid price exceeds the ask price.
This usually occurs when stock is suspended or under a share repurchase scheme.
It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.
The opposite of backwardation is known as contango.
Currency Options
A option is the right to buy or sell something in the future but not the obligation. A currency option is on an FX market.
Carry Trade
A forex trading strategy of borrowing funds in a low-interest rate currency and buying assets in higher yielding currency.
For years this was selling Yen to buy Dollars.
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