|
Friday's Term
Basis Grade
Definition:
The grade of a commodity used as the standard or par grade of a futures contract.
Bear Spread
Definition:
(1) A strategy involving the simultaneous purchase and sale of options of the same class and expiration date, but different strike prices. In a bear spread, the option that is purchased has a lower delta than the option that is bought. For example, in a call bear spread, the purchased option has a higher exercise price than the option that is sold. Also called Bear Vertical Spread. (2) The simultaneous purchase and sale of two futures contracts in the same or related commodities with the intention of profiting from a decline in prices but at the same time limiting the potential loss if this expectation does not materialize.
Accommodation Trading
Definition:
Non-competitive trading entered into by a trader, usually to assist another with illegal trades.
More
Securities Terms >
|
Did You Know?