Spread betting is a modern form of gambling where bettors predict a range of outcomes instead of a binary outcome. It is popular in sports betting and allows for more creative bets. Bookmakers assign a spread of points between teams, and bettors can win even if their team loses but falls within the range. The […]
Crush spreads involve buying futures and selling products made from those commodities to create an artificial interest and increase the value of futures. The soybean futures strategy is a good example. Investors use crush spreads to correct mispricing and generate additional income. Crush spreads are strategies that make use of a double trade model associated […]
A swap spread is the difference in interest rates between a fixed rate investment and an interest rate swap, with the swap spread representing the additional amount an investor would earn on an interest rate swap compared to a fixed rate investment. The quality spread (QSD) spread takes into account the creditworthiness of the two […]
Debt spread is an options spread where the purchased option has a higher value than the premium of the sold option, resulting in a short-term decrease in cash balance. It can be used in any market environment and involves a certain degree of risk. The success of the strategy relies on choosing the right buy […]
A diagonal spread is a stock options strategy where an investor buys and sells two different options positions within the same stock class at different strike prices and with different expiration dates to hedge risk. It involves buying and selling two calls and two puts simultaneously. The strategy can result in profits or losses, and […]
A bull call spread involves buying a call option and selling a call option with a higher exercise price on the same asset. It limits risk and allows for profit if the stock price rises moderately. The maximum potential loss is the difference between premiums paid and received, and the break-even point is determined by […]
Spread betting is a popular way to profit from the performance of stocks, markets, currencies, or commodities. A good spread betting system includes contracting with a single company, using a full range of market analysis, and taking advantage of short sell and arbitrage strategies. These strategies allow investors to profit from both poor and excellent […]
