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Spreading

• In the futures market, buying one futures contract and selling a nearby one to profit from an anticipated narrowing or widening of the spread over time.

 
 

Follow this link for all the terms related to spread.

 
 Embedded terms in definition
 Contract
Futures contract
Futures market
Futures
Market
Narrowing
Nearby
Profit
Spread
Time
Widening
 
 Referenced Terms
 Diversification: Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.Dividing investment funds among a variety of securities offering independent returns.In order to reduce risk, it is wise to own the best company in at least 10 industries, depending upon the size of your portfolio. Choose industries that are likely to have better growth than the economy as a whole.
Another way to diversify is to buy companies of various sizes in different industries. Size can be measured by the dollar figure for sales, (up to $400M = small company; above $4Billion = large company; middle-sized companies are in between.)It refers to Spreading the risks. Diversification occurs when investors buy many different stocks and bonds instead of putting all of their money in a single stock. Similarly, banks can diversify their loans geographically by making loans across the globe instead of a single town.A strategy that aims to reduce risk, involving the Spreading of assets across a mix of companies, investments, industries, geographic areas, maturity dates, and/or other investment categories.

 Diversification: Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.Dividing investment funds among a variety of securities offering independent returns.In order to reduce risk, it is wise to own the best company in at least 10 industries, depending upon the size of your portfolio. Choose industries that are likely to have better growth than the economy as a whole.
Another way to diversify is to buy companies of various sizes in different industries. Size can be measured by the dollar figure for sales, (up to $400M = small company; above $4Billion = large company; middle-sized companies are in between.)It refers to Spreading the risks. Diversification occurs when investors buy many different stocks and bonds instead of putting all of their money in a single stock. Similarly, banks can diversify their loans geographically by making loans across the globe instead of a single town.A strategy that aims to reduce risk, involving the Spreading of assets across a mix of companies, investments, industries, geographic areas, maturity dates, and/or other investment categories.

 Flat price risk: Taking a position either long or short that does not involve Spreading.

 Flow through basis: An account for the investment credit to show all income statement benefits of the credit in the year of acquisition, rather than Spreading them over the life of the asset acquired.

 Spread strategy: A strategy that involves a position in one or more options so that the cost of buying an option is funded entirely or in part by selling another option in the same underlying. Also called Spreading.

<< Spread strategy Spreadsheet >>

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