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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 MatchesIntramarket sector spreadIntramarket sector spreadThe spread between two issues of the same maturity within a market sector. For instance, the difference in interest rates offered for five-year industrial corporate bonds and five-year utility corporate bonds. SpreadSpread(1) The gap between bid and ask prices of a stock or other security. (2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. Also known as a straddle. (3) Difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. (4) The price an issuer pays above a benchmark fixed-income yield to borrow money. 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. TED spreadTED spreadDifference between US Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality. Butterfly spreadButterfly spreadApplies to derivative products. Complex option strategy that involves selling two calls and buying two calls on the same or different markets, with several maturity dates. One of the options has a higher exercise price and the other has a lower exercise price than the other two options. The payoff diagram resembles the shape of a butterfly. Further SuggestionsNOB spreadcall spread Spread option Vertical spread Put ratio backspread Ratio Calendar Spread Box spread bear call spread Gross spread Interdelivery spread Price spread spread betting Calendar spread bear put spread Time spread strategy Ratio Spread condor spread Narrowing the spread Intracommodity spread Bid/ask spread Generic credit spread bull spread put spread ratio spread Option spread |
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