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Glossary


Commercial Paper

Commercial Paper is a short-term promissory notesissued in bearer form by large corporations, with maturities ranging from 5 to 270 days. Since the notes are unsecured, the commercial paper market generally is dominated by large corporations with impeccable credit ratings.

See Also:

Commercial: Commercial is an entity that is involved in the production, processing, or merchandising of a commodity.

Bear: Bear is one who expects a decline in prices. The Bear trader is is the opposite of a Bull trader. A Bear (bearish trader) expect to profit on declining price. A news item is considered bearish if it is expected to result in lower prices.

Credit Rating: Credit Rating is a rating determined by a rating agency that indicates the agency's opinion of the likelihood that a borrower such as a corporation or sovereign nation will be able to repay its debt. The rating agencies include Standard & Poor's, Fitch, and Moody's.

Rally: Rally is an upward movement of prices.

Short: Short (shorting) is the selling side of an open futures contract.


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Risk Statement:

Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.

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