Capital in Trading
Capital refers to the total amount of money available for a trader to invest in securities. It can include funds used for buying and selling assets such as stocks, bonds, or commodities. A key variation of this term is starting capital, which is the amount of money a trader begins with when entering the market. Starting capital is crucial as it determines the scale of investments a trader can make and impacts their potential profits or losses. Managing capital wisely is essential for long-term success in trading.
Related Terms
Arbitrage
Arbitrage is a trading strategy that exploits small price differences for a security across markets...
Issuer
An issuer is the company that sells its shares to the public for the first...
Holding Company
A holding company is a parent entity that owns a stake in one or more...
Free Cash Flow
Free cash flow (FCF) in accounting and earnings reports represents the cash a company retains...
Leverage In Stock Market
Leverage is a loan provided by a broker, enabling traders to hold larger positions with...
Adjusted Closing Price
The adjusted closing price of a stock reflects modifications made to account for corporate actions—such...
