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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 MatchesPut ratio backspreadPut ratio backspreadA complex options strategy adopted when one believes a stock price will decline but wants to protect against it rising. Spread strategySpread strategyA strategy that involves a position in one or more options so that the cost of buying an option is funded entirely or in part by selling another option in the same underlying. Also called spreading. Spread positionSpread positionThe status of an account after a spread order has been carried out. Bull spreadBull spreadA strategy in options trading in which an option is purchased at an exercise price below that of the underlying instrument and simultaneously an option is sold at an exercise price above that of the underlying instrument, both with reference to the same expiry month. This applies to both call options or put options. Generic credit spreadGeneric credit spreadRefers to the corporate bond spread for a particular credit rating and expiry. For example, 10-year single A corporates were priced or trading at 130 basis points above Treasuries last night, or said diffrently, 130 is the generic credit spread for 10-year single A corporates. Further Suggestionsbackspreadbear call spread Ratio Spread box spread Gross spread credit spread Alligator spread Intracommodity spread Perpendicular spread NOB spread Relative yield spread call spread Interdelivery spread calendar spread put spread Intercommodity spread spread Intermarket sector spread Bull spread crack spread diagonal spread Yield spread strategies Bid asked spread bear put spread bid offer spread |
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