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SpreadThe difference between the price one must pay to buy something, such as a currency, and the price one receives for selling it.SpreadThe 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.Spread(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.Spread Similar MatchesCondor spreadCondor spreadAn options strategy involving four strike prices that has both limited risk and limited profit potential. A long call condor spread is established by buying one call at the lowest strike, writing one call at the second strike, writing another call at the third strike, and buying one call at the fourth (highest) strike. Also referred to as a 'flat-top butterfly'. Bear spreadBear spreadA strategy in options trading in which an option is purchased at an exercise price above that of the underlying instrument and simultaneously an option is sold at an exercise price below that of the underlying instrument, both with reference to the same expiry month. This applies to either call options or put options. 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. Yield spreadYield spreadThe difference in yield between different security issues usually securities of different credit quality. Price spreadPrice spreadAn options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices. Further SuggestionsMaturity spreadSpread option Option spread TED spread debit spread Underwriting spread backspread bull spread put spread Intracommodity spread Bid/ask spread call spread Put ratio backspread Ratio Calendar Spread Intercommodity spread Vertical spread Bid asked spread NOB spread Spread income Box spread Relative yield spread ratio spread calendar spread Yield spread strategies Debit spread |
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