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Bid/ask spread |
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Bid/ask spreadThe difference between the price that a buyer must pay on a market and the price that a seller will receive for the same thing. The difference covers the cost of, and provides profit for, the broker or other intermediary, such as a bank on the foreign exchange market.Similar MatchesDiagonal spreadDiagonal spreadAn options strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, two puts or two calls in the same stock. See: Calendar spread; vertical spread. Intermarket sector spreadIntermarket sector spreadThe spread between the interest rate offered in two sectors of the bond market for issues of the same maturity. Bear call spreadBear call spreadThe purchase of a call with a high strike price against the sale of a call with a lower strike price.The maximum profit is the net premium received (premium received - premium paid), while the maximum loss is calculated by subtracting the net premium received from the difference between the high strike price and the low strike price (high strike price - low strike price net premium received). A bear call spread should be entered when lower prices are expected. Intercommodity spreadIntercommodity spreadIn the commodities market, a spread consisting of a long position and a short position in different but related commodities for example, speculating that the price relationship between the two commodities will change, e.g., platinum and gold. Bull spreadBull spreadA spread strategy in which an investor buys an out-of-the-money put option, financing it by selling an out-of-the money call option on the same underlying security. Further Suggestionscrack spreadspread bear put spread Dealers spread Delta Spread Generic credit spread Maturity spread Spread order calendar spread put spread call spread Alligator spread Horizontal spread Calendar spread Relative yield spread Narrowing the spread diagonal spread Ratio Spread condor spread Intracommodity spread Selling the spread Butterfly spread Gross spread Vertical spread Box spread |
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