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Spread Derivative

A credit derivative that is based on a credit spread as observed from market spread levels, for the purpose of...

Spread Contract

A futures contract or futures option in which the underlying is a specific spread. Examples of underlying spreads include crack...

Spread

A transaction in which the trader simultaneously purchases, or takes a long position in, a contract on a specific asset...

Spread Transaction

A transaction in which the trader simultaneously purchases, or takes a long position in, a contract on a specific asset...

Basis Risk

The danger of loss which is associated with an unexpected widening or narrowing in the basis between the time of...

Interest Rate Futures

A futures contract which allows the buyer to lock in a future investment rate today or at a specific incoming...

Swap Futures

A futures contract which typically has an interest rate swap as underlying. It offers an instrumental tool for corporate treasurers,...

Spark Spread Futures

A futures contract that has the spark spread as underlying. This implies that an investor buys or sells the price...

Short the Basis

The purchase of futures contracts as a hedge against a short position in futures or options whereby a trader is...

Spark Spread

The spread between the price of electricity and the price of natural gas needed to generate that electricity. More specifically,...