|
|
Spread income |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Spread incomeAlso called margin income, the difference between income and cost. For a depository institution, the difference between the assets it invests in (loans and securities) and the cost of its funds (deposits and other sources).Spread income 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. 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. Debit spreadDebit 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. Calendar spreadCalendar spreadThe sale (purchase) of a near month call option (put option) and the simultaneous purchase (sale) of a longer dated call option (put option) at the same exercise price. Debit spreadDebit 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. Further Suggestionsput spreadRelative yield spread credit spread Horizontal spread Yield spread strategies Narrowing the spread bid offer spread Spread option Yield spread backspread Intramarket sector spread box spread Spread strategy Gross spread Selling the spread Option spread Perpendicular spread condor spread TED spread Mob spread Bid/ask spread call spread Spread Bid asked spread Intermarket sector spread |
|
|
|