Contract Month

Trading Basics

Contract Month

The month during which a contract or bet expires

Other Trading Basics

Black Box Trading

Also referred to as automatic or algorithmic trading.

The trader does not need to see the system in operation, in effect its a black box.

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Commercial Paper

How big companies finance short-term cash flow.

Like bonds but without the coupon, instead, the APR is determined by the discount the agreements are entered into and the length of time to repayment.

For example, a blue chip company might borrow $9.95m dollars today and repay $10m in a month’s time.

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