A base rate is the interest rate that a central bank – such as the Bank of England or Federal Reserve – will charge commercial banks for loans. The base rate is also known as the bank rate or the base interest rate.

At the money (ATM) is a term used to describe an options contract with a strike price that is identical to the underlying market price. At the money, options see a lot of trading activity, because they are so close to becoming profitable.

An asset is an economic resource that can be owned or controlled to return a profit or a future benefit. In financial trading, the term asset relates to what is being exchanged on markets, such as stocks, bonds, currencies or commodities.