Questions tagged [spreads]

A spread ca refer to one of: * the difference between the bid and the ask price of a security. * an options position established by purchasing one option and selling another option of the same class but of a different series. * The difference between a financial measurement relative to some benchmark (e.g. credit spreads, Z-spreads)

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22
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How does a dealer (or market maker) earn the bid-ask spread on a stock?

If I am correct, dealers purchase assets for their own accounts, and later sell them for a profit from their inventory. But the spreads is the difference between buy (or "bid") prices and sell (or "...
5
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3answers
3k views

The spread goes to the market maker, is the market maker the exchange?

I understand that the bid-ask spread is the difference between the price a buyer is willing to pay and the price a seller is willing to take for an asset. I also understand that this difference goes ...
5
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1answer
692 views

How do I minimize exchange rate spread costs when shopping online?

I get my income in euros. I need to pay for stuff in USD because I use shops like Dealextreme where the base currency is USD. I have a Visa Debit card (so not a real Visa) since I am a student but ...
3
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1answer
178 views

International Bank Account Only For USD For Student

I am not sure whether I use the right terminology in the heading, since I call the bank account which has only USD "international bank account" because it is not in euros. I need only USD for online ...
2
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2answers
172 views

Failed Iron Condor while market price was under Short Call Spread

Symbol is: SPY. My short call spread was at $412, and market price was $410.50... I was 100% in returns until RH closed my call spread for a negative $5,688... I do not understand what I did wrong ...
2
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3answers
3k views

Does a bid and ask price exist for indices like the S&P500?

When buying a stock (say Google or Apple) at day 1 you pay the ask price of that day. When selling the stock at day 6, you get the bid price of that day. The return you made is given by [ ...