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In finance, an Intermarket Spread is collateral sale of a futures contract on one exchange and the simultaneous purchase of another futures contract on another exchange within any given month. As with any other spread trade , an intermarket spread attempts to profit from the widening or narrowing of the gap between the two contract prices.
A ladder can be seen as a modification of a bull spread or a bear spread with an additional option: for instance, a bear call ladder is equivalent to a bear call spread with an additional long call. A bull put ladder is equivalent to a bull put spread with an additional long put.
The interbank market is the top-level foreign exchange market where banks exchange different currencies. [1] The banks can either deal with one another directly, or through electronic brokering platforms.
For example, a GBPUSD contract could give the owner the right to sell £1,000,000 and buy $2,000,000 on December 31. In this case the pre-agreed exchange rate, or strike price, is 2.0000 USD per GBP (or GBP/USD 2.00 as it is typically quoted) and the notional amounts (notionals) are £1,000,000 and $2,000,000.
In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward) [1] and may use foreign exchange derivatives.
Intermarket spread; International Securities Lending Association; International Swaps and Derivatives Association; Intrinsic value (finance) Iron butterfly (options ...
The forward market is the informal over-the-counter financial market by which contracts for future delivery are entered into. It is mainly used for trading in foreign currencies, where the contracts are used to hedge against foreign exchange risk.
A condor can be thought of as a spread of two vertical spreads, [5] as a modification of a strangle with limited risk, [1] or as a modification of a butterfly where the options in the body have different strike prices. [3]