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Debit spread |
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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/ask spreadBid/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. 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. Bid asked spreadBid asked spreadThe difference between the bid and the asked prices. 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. Bear put spreadBear put spreadThe purchase of a put with a high strike price against the sale of a put with a lower strike price in expectation of declining prices. The maximum profit is calculated: (high strike price - low strike price) - net premium received where net premium received = premiums paid - premiums received. Further SuggestionsSpread orderIntermarket sector spread Price spread crack spread Intracommodity spread backspread Time spread strategy Maturity spread call spread Spread option Spreadsheet Dealers spread Yield spread strategies Gross spread bear spread spread Selling the spread calendar spread Credit spread Ratio Calendar Spread Spread income Interdelivery spread Mob spread bear call spread bid/offer spread |
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