CoastaxProTech Insights
Trading Terminology for Australian Beginners
A plain-English introduction to volatility, spreads, leverage, margin, liquidity and common market orders.
Core terms
- Volatility
- How widely and quickly prices move.
- Spread
- The difference between quoted buy and sell prices.
- Liquidity
- How readily an asset can be bought or sold without a large price change.
- Leverage
- Exposure larger than the cash committed, which magnifies gains and losses.
- Margin
- Funds required to open and maintain a leveraged position.
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