|
|
Debit spread |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Debit spreadApplies to derivative products. Difference in the value of two options, when the value of the option bought exceeds the value of the one sold. One buys a "debit spread." Antithesis of a credit spread.Debit spreadA spread strategy that decreases the account's cash balance when it is established. A bull spread with calls and a bear spread with puts are examples of debit spreads.Similar MatchesBid offer spreadBid offer spreadThe difference between the selling price and the purchase price for investments.When you ask a broker what price the shares of a company are trading at in the market, he will quote two prices: the bid price is the price at which you can sell your shares, and the offer price is the price at which you can buy them. The first is always lower than the second, and the difference between them is the spread.Market makers, who act like wholesalers in the stock market, make their profit from the spread - buying shares at the bid price and selling them at the offer price 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. Box spreadBox spreadA four-sided option spread that involves a long call and a short put at one strike price as well as a short call and a long put at another strike price. Example: buying 1 XYZ May 60 call, and writing 1 XYZ May 65 call; simultaneously buying 1 XYZ May 65 put, and writing 1 May 60 put. Bid asked spreadBid asked spreadThe difference between the bid and the asked prices. Selling the spreadSelling the spreadA spread whose option to be sold is trading at a higher premium than the option to be bought. Further SuggestionsRelative yield spreadSpread Ratio Spread bear put spread Spread spread Ratio Calendar Spread NOB spread Maturity spread Box spread Put ratio backspread Spread strategy Bid/ask spread Spread option bull spread Price spread diagonal spread Intramarket sector spread bear spread Calendar spread condor spread Perpendicular spread calendar spread Spread income ratio spread |
|
|
|