Trading Basics

Credit Rating

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

Other Trading Basics

Bottom Fishing

When a trader buys an asset cheaply at the bottom of its fall.

Balance of Payments

Also BoP. This is the difference between payments into or out of a country. It can be negative or positive and is used by traders in fundamental analysis.

Contango

This is when the futures price of a security is above the cash price at maturity. The opposite is backwardation.

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