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Delta Spread |
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Delta SpreadA ratio spread that is established as a neutral position by utilizing the deltas of the options involved. The neutral ratio is determined by dividing the delta of the purchased option by the delta of the written option. See also Ratio Spread and Delta.Delta Spread Similar MatchesSpreadSpreadThe difference between the price one must pay to buy something, such as a currency, and the price one receives for selling it. Ratio spreadRatio spreadOption strategy using either puts or calls. The trader purchases a certain number of options and then sells a larger number of out of the money options. Credit spreadCredit spreadA spread strategy that increases the account's cash balance when it is established. A bull spread with puts and a bear spread with calls are examples of credit spreads. Bid 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 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. Further SuggestionsNarrowing the spreadButterfly spread condor spread Underwriting spread Spread Spread order Intracommodity spread spread betting diagonal spread Intramarket sector spread Ratio Spread Spread position TED spread Debit spread Selling the spread Credit spread Maturity spread Ratio Calendar Spread Yield spread crack spread bear put spread Calendar spread Mob spread Diagonal spread Option spread |
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