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Spread Trade
In finance, a spread trade (also known as a relative value trade) is the simultaneous purchase of one security and sale of a related security, called legs, as a unit. Spread trades are usually executed with options or futures contracts as the legs, but other securities are sometimes used. They are executed to yield an overall net position whose value, called the spread, depends on the difference between the prices of the legs. Common spreads are priced and traded as a unit on futures exchanges rather than as individual legs, thus ensuring simultaneous execution and eliminating the execution risk of one leg executing but the other failing. Spread trades are executed to attempt to profit from the widening or narrowing of the spread, rather than from movement in the prices of the legs directly. Spreads are either "bought" or "sold" depending on whether the trade will profit from the widening or narrowing of the spread. Margin The volatility of the spread is typically much lower th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance
Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Administration wich study the planning, organizing, leading, and controlling of an organization's resources to achieve its goals. Based on the scope of financial activities in financial systems, the discipline can be divided into Personal finance, personal, Corporate finance, corporate, and public finance. In these financial systems, assets are bought, sold, or traded as financial instruments, such as Currency, currencies, loans, Bond (finance), bonds, Share (finance), shares, stocks, Option (finance), options, Futures contract, futures, etc. Assets can also be banked, Investment, invested, and Insurance, insured to maximize value and minimize loss. In practice, Financial risk, risks are always present in any financial action and entities. Due ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stock
Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the Share (finance), shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all Seniority (financial), senior claims such as secured and unsecured debt), or Voting interest, voting power, often dividing these up in proportion to the number of like shares each stockholder owns. Not all stock is necessarily equal, as certain classes of stock may be issued, for example, without voting rights, with enhanced voting rights, or with a certain priority to receive profits or liquidation proceeds before or after other classes of Shareholder, shareholders. Stock can be bought and sold over-the-counter (finance), privately or on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sell In May And Go Away
Sell in May and go away is an investment strategy for stocks based on a theory (sometimes known as the Halloween indicator) that the period from November to April inclusive has significantly stronger stock market growth on average than the other months. In such strategies, stock holdings are sold or minimized at about the start of May and the proceeds held in cash (e.g. a money market fund); stocks are bought again in the autumn, typically around Halloween. "Sell in May" can be characterized as the belief that it is better to avoid holding stock during the summer period. Though this seasonality is often mentioned informally, it has largely been ignored in academic circles. Analysis by Bouman and Jacobsen (2002) shows that the effect has indeed occurred in 36 out of 37 countries examined, and since the 17th century (1694) in the United Kingdom. The effect is strongest in Europe. Causes Data show that stock market returns in many countries during the May–October period are system ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Seasonal Spread Trading
Seasonal spread traders are spread traders that take advantage of seasonal patterns by holding long and short positions in futures contracts simultaneously in the same or a related commodity markets based on seasonal patterns. These are traded on futures exchanges such as the Chicago Mercantile Exchange, the New York Mercantile Exchange, or the London Metal Exchange among others. The spread is the difference between the simultaneous values of these futures contracts. Traders may use a combination of fundamental analysis, technical, and historical factors in their analysis. Speculators hope to profit from the relative changes in price between the initial and offsetting positions. Contracts may be spread against different months or different markets using a calendar effect. Position traders may hold positions with less risk using spreads as one position somewhat offsets the other position and the return is the difference between the two. Analysis A critical point for this ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Spread Betting
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, such as fixed-odds (or money-line) betting or parimutuel betting. A point spread is a range of outcomes and the bet is whether the outcome will be above or below the spread. , spread betting was a major growth market in the UK, with the number of gamblers heading towards one million. Financial spread betting (see below) can carry a high level of risk if there is no "stop". In the UK, financial spread betting is regulated by the Financial Conduct Authority rather than the Gambling Commission who regulate spread betting on sports. Purpose The general purpose of spread betting is to create an active market for both sides of a binary wager, even if the outcome of an event may appear ''prima facie'' to be biased towards one side or the other. In sports, almost every contest has a ''favorite'' and an ''unde ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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 financial spread betting is t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Forex
The foreign exchange market (forex, FX, or currency market) is a global decentralization, decentralized or Over-the-counter (finance), over-the-counter (OTC) Market (economics), market for the trading of currency, currencies. This market determines Exchange rate, foreign exchange rates for every currency. By Volume (finance), trading volume, it is by far the largest market in the world, followed by the Bond market, credit market. The main participants are the Foreign exchange market#Market participants, larger international banks. Financial centres function as anchors of trading between a range of multiple types of buyers and sellers around the clock, with the exception of weekends. As currencies are always traded in pairs, the market does not set a currency's absolute value, but rather determines its relative value by setting the market price of one currency if paid for with another. Example: 1 USD is worth 1.1 Euros or 1.2 Swiss Francs etc. The market works through fin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract For Difference
In finance, a contract for difference (CFD) is a financial agreement between two parties, commonly referred to as the "buyer" and the "seller." The contract stipulates that the buyer will pay the seller the difference between the current value of an asset and its value at the time the contract was initiated. If the asset's price increases from the opening to the closing of the contract, the seller compensates the buyer for the increase, which constitutes the buyer's profit. Conversely, if the asset's price decreases, the buyer compensates the seller, resulting in a profit for the seller. History Invention Developed in Britain in 1974 as a way to leverage gold, modern CFDs have been trading widely since the early 1990s. CFDs were originally developed as a type of equity swap that was traded on margin. The invention of the CFD is widely credited to Brian Keelan and Jon Wood, both of UBS Warburg, during their Trafalgar House deal in the early 1990s. Asset management and syntheti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States Dollar
The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish dollar, Spanish silver dollar, divided it into 100 cent (currency), cents, and authorized the Mint (facility), minting of coins denominated in dollars and cents. U.S. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color. The U.S. dollar was originally defined under a bimetallism, bimetallic standard of (0.7734375 troy ounces) fine silver or, from Coinage Act of 1834, 1834, fine gold, or $20.67 per troy ounce. The Gold Standard Act of 1900 linked the dollar solely to gold. From 1934, its equivalence to gold was revised to $35 per troy ounce. In 1971 all links to gold were repealed. The U.S. dollar became an important intern ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United Arab Emirates Dirham
The dirham (; , currency sign, abbreviation: د.إ in Arabic script, Arabic, Dh (singular) and Dhs (plural) or DH in Latin alphabet, Latin; ISO 4217, ISO code: AED) is the official currency of the United Arab Emirates. The dirham is subdivided into 100 . It is Fixed exchange rate system, pegged to the United States Dollar at a constant exchange rate of approximately 3.67 AED to 1 USD. In March 2025, the UAE Central Bank announced the creation of a Dirham currency symbol, , derived from the Latin letter crossed with two horizontal lines. History The name ''dirham'' is a loan from the Greek :wikt:δραχμή, δραχμή (drakhmé). Due to centuries of trade and usage of the currency, ''dirham'' survived through the Ottoman Empire. Before 1966, all the emirates that now form the UAE used the Gulf rupee, which was pegged at parity to the Indian rupee. On 6 June 1966, India decided to devalue the Gulf rupee against the Indian rupee. Not accepting the devaluation, several of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
