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What is the meaning of spread compression?
Spread compression happens as a result of the price of a bond going up and, as per the inverse relationship between price and yield, the yield goes down. There is risk of spread compression when demand for a bond increases because the increased demand can push up the price of a bond.
What is crossing the bid ask spread?
Selling at a price equal to or lower than the bid price or buying at a price equal to or higher than the ask price.
Explain why the bid-ask spread is a transaction cost?
The bid-ask spread is the difference between the bid price (the amount of money you get when you sell) and the ask price (the amount of money it costs to buy). Since the ask price is higher than the bid price, it costs you more money to buy the asset than you would receive should you be selling the same asset. This spread is the price (along with a commission) for making the trade.
What does a 'bull spread' mean in options trading?
A bull spread in options trading is just a vertical strategy. This is used when a person believes the spread will rise and the price in turn will do the same.
What is the difference between the ask and bid price of a stock?
The ask price is the price a seller is willing to accept for a stock, while the bid price is the price a buyer is willing to pay for the stock. The difference between the two is called the spread.
What is the difference between the price to buy and the price to sell stocks?
The difference between the price to buy and the price to sell stocks is known as the bid-ask spread. The price to buy, also called the bid price, is the amount a buyer is willing to pay for a stock. The price to sell, also called the ask price, is the amount a seller is asking for the stock. The bid-ask spread represents the cost of trading a stock and is influenced by factors such as supply and demand, market conditions, and the stock's liquidity.
What is the difference between the bid and ask price for bonds?
The bid price is the highest price a buyer is willing to pay for a bond, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask price is known as the spread.
What is the difference between the bid and ask stock price?
The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask price is known as the spread.
Why reseller price is cheaper?
Product manufacturer wants to encourage for wide-spread outlets?
What is bearing spread?
A bear spread is one of a variety of strategies in finance involving two or more options which can potentially profit from a fall in the price of underlying stock.
What is a bear spread?
A bear spread is one of a variety of strategies in finance involving two or more options which can potentially profit from a fall in the price of underlying stock.
What is a calendar spread?
A calendar spread is an options strategy involving the simultaneous purchase and sale of options of the same class and strike price but with different expiration dates.
