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Spread order |
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Spread orderAn order listing the series of options that the customer wants to buy and sell and the desired spread between the premiums paid and received for the options.Spread order Similar MatchesMaturity spreadMaturity spreadThe difference in returns between bonds pfof different time lengths. SpreadSpreadThe difference between the bid price and the offer price for shares and for units in a unit trust. Market makers make their profit from the spread. They buy shares at the lower bid price and sell at the higher offer one. Ratio Calendar SpreadRatio Calendar SpreadSelling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls. 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. Bear call spreadBear call spreadThe purchase of a call with a high strike price against the sale of a call with a lower strike price.The maximum profit is the net premium received (premium received - premium paid), while the maximum loss is calculated by subtracting the net premium received from the difference between the high strike price and the low strike price (high strike price - low strike price net premium received). A bear call spread should be entered when lower prices are expected. Further Suggestionscall spreadbull spread Mob spread Spread position Ratio Spread Intermarket sector spread spread betting debit spread Spread strategy Box spread Spread option Vertical spread bid offer spread Underwriting spread Price spread Calendar spread Yield spread Bid asked spread Selling the spread Perpendicular spread Spread TED spread diagonal spread Spreadsheet Put ratio backspread |
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