limited risk spread

limited risk spread
A bull spread in a market where the price difference between the two contract months covers the full carrying charges. The risk is limited because the probability of the distant month price moving to a premium greater than full carrying charges is minimal. The CENTER ONLINE Futures Glossary

Financial and business terms. 2012.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • spread — The price difference between two related markets or commodities. Chicago Board of Trade glossary l) Positions held in two different futures contracts, taken to profit from the change in the difference between the two contracts prices; e.g., long… …   Financial and business terms

  • bull spread — In most commodities and financial instruments, the term refers to buying the nearby month, and selling the deferred month, to profit from the change in the price relationship. Chicago Board of Trade glossary The purchase of near month futures… …   Financial and business terms

  • Spread betting — is any of various types of wagering on the outcome of an event, where the pay off is based on the accuracy of the wager, rather than a simple win or lose outcome, which is known as money line betting. A spread is a range of outcomes, and the bet… …   Wikipedia

  • Bear call spread — In finance, a bear call spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. It is entered by buying call options of a certain strike price… …   Wikipedia

  • Iron Butterfly Spread — Iron butterfly is the name of an advanced, neutral outlook, options trading strategy that involves buying and holding four different options at three different strike prices. It is a limited risk, limited profit trading strategy that is… …   Wikipedia

  • Bear put spread — In finance, a bear put spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. It is entered by buying higher striking in the money put options… …   Wikipedia

  • Butterfly Spread — A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration but three different strike prices to create a range of prices the strategy can profit from. The trader sells two… …   Investment dictionary

  • Credit spread (options) — Finance Financial markets Bond market …   Wikipedia

  • Mahindra & Mahindra Financial Services Limited — महिन्द्रा एंड महिन्द्रा फायनांशियल सर्विसेस लिमिटेड Type Public Traded as NSE:  …   Wikipedia

  • Credit risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”