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1. Credit ratings.

A rating attributed to a security that is deemed speculative (less certain in respect of the preservation of the capital invested) in the opinion of a credit rating agency such as Fitch Ratings, Moody’s or Standard and Poor’s.

Speculative grade represents credit ratings which are weaker than investment grade.

Also known as 'non-investment' grade.

2. Trading.

A transaction, investment or position taken in the hope or expectation of a gain following a favourable change in market prices.

Contrasted with a hedging or arbitrage transaction.

See also