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Glossary


Trendline

In charting, a Trendline is a line drawn across the bottom or top of a price chart indicating the direction or trend of price movement. If up, the trendline is called bullish; if down, it is called bearish.

See Also:

Trend: Trend is the general direction, either upward or downward, in which prices have been moving.

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.

Bull: Bull is a trader who expects a rise in prices. Bull trader is the opposite of bear. Bullish trader expects to profit on rising price. A news item is considered bullish if it is expected to result in higher prices.

Call: There are three meaning of the "Call" term. It could be:
1) An option contract giving the buyer the right but not the obligation to purchase a commodity or other asset or to enter into a long futures position;
2) a period at the opening and the close of some futures markets in which the price for each futures contract is established by auction;
3) the requirement that a financial instrument be returned to the issuer prior to maturity, with principal and accrued interest paid off upon return.

Called: Called is another term for exercised when an option is a call. In the case of an option on a physical, the writer of a call must deliver the indicated underlying commodity when the option is exercised or called. In the case of an option on a futures contract, a futures position will be created that will require margin, unless the writer of the call has an offsetting position.

Charting: Charting is the use of graphs and charts in the technical analysis of futures markets to plot price movements, volume, open interest or other statistical indicators of price movement as well as volume based technical indicators with the purpose of the analysis history and predicting a possible future trend development.


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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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