- A box spread is an option arbitrage strategy that combines buying a bullish call spread with a corresponding bearish put spread.
- A bull call spread is an option strategy used when a trader bets that a stock will have a limited increase in value.
- A bull spread is an optimistic option strategy used when an investor expects a moderate increase in the price of the underlying asset.
- A buy order to open is commonly used by traders to open positions on a given option or stock.
- Buying on margin means you are investing borrowed money.
- A call can refer to either a call auction or a call option.
- Cheapest delivery is the cheapest security that can be long in a futures contract to meet the contract specifications.
- Contango is a situation where the futures price of a commodity is higher than the spot price.
- A Contract for Difference (CFD) is a financial contract that pays for the difference in settlement price between an open and a closed trade.
- The credit spread reflects the difference in yield between treasury and corporate bonds with the same maturity.