Glossary entry

German term or phrase:

Spread-Produkt

English translation:

spread position; spread product

Added to glossary by Beate Lutzebaeck
Jun 28, 2002 09:56
22 yrs ago
2 viewers *
German term

Spread-Produkt

German to English Bus/Financial Investment / Securities
Die Staatsanleihen stiegen sehr stark in ihrem Kurs (so dass ein sehr hoher Verlust auf der Short-Position bestand) und das Spread-Produkt wurde ebenfalls in Mitleidenschaft gezogen (entweder durch einen Kursverlust oder eine Spread-Ausweitung).
Proposed translations (English)
4 spread position
1 spread product
Change log

Aug 9, 2005 14:55: Natalie Wilcock (X) changed "Field (specific)" from "(none)" to "Investment / Securities"

Proposed translations

3 days 6 hrs
Selected

spread position

Spreads are not products, because you create it yourself as an options contract (which is the product) , i.e. sell the S&P500 1000 call and 980 put. If at expiration the spread closes between these two benchmarks, it expires worthless (what you want) and you pocket the premium on both ends.
Peer comment(s):

neutral Ralf Lemster : Spreads can indeed be products - see my added note.
2 hrs
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4 KudoZ points awarded for this answer. Comment: "Again, thank you, the input is much appreciated."
4 hrs

spread product

Impossible to be more precise without context - what spread does this product refer to, and what's the structure?

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Note added at 2002-07-01 18:55:49 (GMT) Post-grading
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Although I agree with Klaus\'s interpretation of TIN\'s query (I believe \"spread position\" is correct here), spreads can, in fact, be products. There are examples for exchange-traded spreads (such as inter-product spreads which were once listed by Eurex, as well as their upcoming \"delta-neutral trading products\", which are essentially futures/options spreads), as well as OTC products (mostly warrants, but also certificates, etc.), which are based on embedded spreads or represent spreads between different assets.
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