Trading Basics

Credit Rating

An entities perceived ability to repay its debt. Provided by credit rating agencies. AAA is the best credit rating.

A term used in options trading where the strike price of the option is similar to the current underlying spot price of the instrument.

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.

Anything that is owned that is expected to generate a return to the owned.

Opposite to a liability.

Learn the skills needed to trade the markets on our Trading for Beginners course.