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Spread Trade
In finance Finance is a term for the management, creation, and study of money In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corn ..., a spread trade (also known as relative value trade) is the simultaneous purchase of one security Security is freedom from, or resilience against, potential Potential generally refers to a currently unrealized ability. The term is used in a wide variety of fields, from physics Physics is the natural science that studies matter, its El ... and sale of a related security, called legs, as a unit. Spread trades are usually executed with options or futures contracts In finance, a futures contract (sometimes called futures) is a standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, between parties not known to each other. The asset transacted is usual ... as ...
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Finance
Finance is a term for the management, creation, and study of money In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corner">174x174px Money is any item or verifiable record that is generally a ... and investment Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In , the purpose of investing is to generate a from the inve ...s. Pamela Drake and Frank Fabozzi Frank J. Fabozzi is an United States, American economist, educator, writer, and investor, currently Professor of Finance at EDHEC Business School and a Member of Edhec Risk Institute. He was previously a Professor in the Practice of Finance and Bec ... (2009)What Is Finance?/ref> Specifically, it deals with the questions of how an individual, company A company ...
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Option Spread
Options spreads are the basic building blocks of many options strategies, options trading strategies. A spread position is entered by buying and selling equal number of options of the same class on the same underlying security but with different strike prices or expiration dates. An option spread shouldn't be confused with a spread option. The three main classes of spreads are the horizontal spread, the vertical spread and the diagonal spread. They are grouped by the relationships between the strike price and expiration dates of the options involved - *Vertical spreads, or money spreads, are spreads involving options of the same underlying security, same expiration month, but at different strike prices. *Horizontal, calendar spreads, or time spreads are created using options of the same underlying security, same strike prices but with different expiration dates. *Diagonal spreads are constructed using options of the same underlying security but different strike prices and expirati ...
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Spread Betting
Spread betting is any of various types of wagering File:A photo of a gambling stand in Paris.jpg, A gambling stand in Paris Gambling (also known as betting) is the wagering of money or something of Value (economics), value (referred to as "the stakes") on an Event (probability theory), event wi ... on the outcome Outcome may refer to: * Outcome (probability), the result of an experiment in probability theory * Outcome (game theory), the result of players' decisions in game theory * ''The Outcome'', a 2005 Spanish film * An outcome measure (or clinical endpo ... of an event where the pay-off is based on the accuracy In a set of measurements, accuracy is closeness of the measurements to a specific value, while precision is the closeness of the measurements to each other. ''Accuracy'' has two definitions: # More commonly, it is a description of ''systematic err ... of the wager, rather than a simple "win or lose" outcome, such as fixed-odds (or money-line) betting or parimutuel ...
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Financial Betting
Financial betting refers to the wagering on the price development of a financial instrument at some later date relative to the current price or level of the instrument, against odds offered by a bookmaker. Maximum potential pay-off of the wager is known when the bet is taken and as a corollary risk is known beforehand by being limited to the initial stake. Financial betting instruments are a type of digital option. The outcome of the wager at settlement is binary, that is, either a win or a loss. Settlement is executed in cash and there is no delivery of the underlying asset. At any point in time prior to the settlement date bets can often be sold, allowing for possibilities to bet on the accuracy of a market move within the fixed limits of zero win (loss of the stake) and maximum potential win. A fee might sometimes be charged for this service. The main difference between financial betting and speculation on financial markets using products such as Spread betting#Financial spread ...
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Forex
The foreign exchange market (Forex, FX, or currency market) is a global decentralized Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group. Concep ... or over-the-counter (OTC) market for the trading of currencies A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" in the most specific sense is money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money bags handed t .... This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volumeIn capital markets, volume, or trading volume, is the amount (total number) of a security (finance), security (or a given set of securiti ...
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Contract For Difference
In finance Finance is a term for the management, creation, and study of money In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corn ..., a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset In financial accounting Financial accounting is the field of accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such a ... and its value at contract time (if the difference is negative, then the seller pays instead to the buyer). History Invention CFDs were originally developed in the early 1990s in London as a type of equity swap An equity swap is a financial derivative contrac ...
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Bucket Shop (stock Market)
A bucket shop is a business that allows gambling based on the prices of stocks or commodities. A 1906 U.S. Supreme Court ruling defined a bucket shop as "an establishment, nominally for the transaction of a stock exchange business, or business of similar character, but really for the registration of bets, or wagers, usually for small amounts, on the rise or fall of the prices of stocks, grain, oil, etc., there being no transfer or delivery of the stock or commodities nominally dealt in". A person who engages in the practice is referred to as a bucketeer and the practice is sometimes referred to as bucketeering. Bucket shops were found in many large American cities from the mid-1800s but the practice was eventually ruled illegal and largely disappeared by the 1920s. Overview Definition and term origin According to ''The New York Times'' in 1958, a bucket shop is "an office with facilities for making bets in the form of orders or options based on current exchange prices of securities ...
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United States Dollar
The United States dollar (symbol A symbol is a mark, sign, or that indicates, signifies, or is understood as representing an , , or . Symbols allow people to go beyond what is n or seen by creating linkages between otherwise very different s and s. All (and ) is achieved th ...: ; code In communications and information processing, code is a system of rules to convert information—such as a letter (alphabet), letter, word, sound, image, or gesture—into another form, sometimes data compression, shortened or secrecy, secret, ...: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" in the most specific sense is money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money ...
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Saudi Riyal
#REDIRECT Saudi riyal #REDIRECT Saudi riyal#REDIRECT Saudi riyal The Saudi riyal ( ar, ريال سعودي '); is the currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" in the most specific sense is money ...
{{R from other capitalisation ...
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United Arab Emirates Dirham
The United Arab Emirates dirham (; ar, درهم إماراتي, sign A sign is an object Object may refer to: General meanings * Object (philosophy), a thing, being, or concept ** Entity, something that is tangible and within the grasp of the senses ** Object (abstract), an object which does not exist at ...: د.إ; code In communications and information processing, code is a system of rules to convert information—such as a letter (alphabet), letter, word, sound, image, or gesture—into another form, sometimes data compression, shortened or secrecy, secret, ...: AED; commonly abbreviated "DH" or "Dhs."), also known as simply the Emirati dirham, is the currency of the United Arab Emirates The United Arab Emirates (UAE; ar, الإمارات العربية المتحدة ) or the Emirates ( ar, الإمارات ), is a country in Western Asia. It is located at the eastern end of the Arabian Peninsula, and shares borders with Oma .... The dirham is subdivi ...
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Interest Rate Swap
In finance, an interest rate swap (finance), swap (IRS) is an interest rate derivative, interest rate derivative (IRD). It involves exchange of interest rates between two parties. In particular it is a Interest_rate_derivative#Linear_and_non-linear, "linear" IRD and one of the most Market liquidity, liquid, benchmark products. It has associations with forward rate agreement, forward rate agreements (FRAs), and with zero coupon swap, zero coupon swaps (ZCSs). In its December 2014 statistics release, the Bank for International Settlements reported that interest rate swaps were the largest component of the global Over-the-counter (finance), OTC Derivative (finance), derivative market, representing 60%, with the notional amount outstanding in OTC interest rate swaps of $381 trillion, and the gross market value of $14 trillion. Interest rate swaps can be traded as an index through the FTSE MTIRS Index. Interest rate swaps General description An interest rate swap's (IRS's) effective ...
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Swap Spread
Swap spreads are the difference between the swap rate (a fixed interest rate) and a corresponding government bond yield with the same maturity (United_States_Treasury_security#Treasury_bond, Treasury securities in the case of the United States). For example, if the current market rate for a five-year swap is 1.35 percent and the current yield on the five-year Treasury note is 1.33 percent, the five-year swap spread would be 0.02 percentage points, or 2 Basis point, basis points. Often, fixed income prices will be quoted in "SWAPS +", wherein the swap rate is added to a given number of basis points. The swap rate there is simply the yield on an equal-maturity Treasury plus the swap spread. Swap spread became a popular indication of credit spread (bond), credit spread in Europe during the 1990s. References

Financial markets Swaps (finance) Credit risk {{finance-stub ...
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