What Is Spread Betting? Spread betting refers to speculating on the direction of a financial market without actually owning the underlying security. It involves placing a bet on the price movement of a security. A spread betting company quotes two prices, the bid and ask price (also called the spread), and investors bet whether the
What Is a Spread Indicator? A spread indicator is a measure that represents the difference between the bid and ask price of a security, currency, or asset. The spread indicator is typically used in a chart to graphically represent the spread at a glance, and is a popular tool among forex traders. The indicator, displayed
What Is a Spread-Load Contractual Plan? A spread-load contractual plan spreads a mutual fund’s sales charge, or load, over a period of time. It is a fee-payment structure applicable to mutual funds in which the sales charge or commission (load) is not entirely paid at the time the investor first contributes funds to the mutual
What Is a Spreadlock? A spreadlock is a credit derivative contract that establishes a predetermined spread for future interest rate swaps. The two main types of spreadlocks that can be used are forward-based spreadlocks and option-based spreadlocks. With a spreadlock, an interest rate swap user may lock in a current spread between a swap and
What is Spread-To-Worst? Spread-to-worst (STW) measures the dispersion of returns between the best and worst performing security in a given market, usually bond markets, or between returns from different markets. Key Takeaways Spread-to-worst (STW) measures the dispersion of returns between the best and worst performing security in a given market, usually bond markets, or between
What Is Spring Loading? Spring loading is an option-granting practice in which options are granted to employees at a time that precedes a positive news event. This is a controversial practice as it allows employees to potentially book instant profits after the news event. It is not illegal but it does bear a resemblance to
What is Sprinkling Provision Sprinkling provision is a provision within a life insurance agreement that allows the policy’s trustee to spread the death benefit around to beneficiaries at his or her discretion. The sprinkling provision gives beneficiaries in greater need of funds, the opportunity to receive a greater portion of the payout than if the
What Is the S&P/TSX Composite Index? The S&P/TSX Composite Index is a capitalization-weighted equity index that tracks the performance of the largest companies listed on Canada’s primary stock exchange, the Toronto Stock Exchange (TSX). It is the equivalent of the S&P 500 index in the United States, and as such is closely monitored by Canadian
What Is a Special Purpose Vehicle (SPV)? A special purpose vehicle, also called a special purpose entity (SPE), is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt. For this reason, a special purpose vehicle
What Is the S&P Global Broad Market Index (BMI)? S&P Global Broad Market Index (BMI) is a market capitalization-weighted index maintained by Standard and Poor’s (S&P) providing a broad measure of global equities markets. The index includes approximately 11,000 companies in more than 50 countries covering both developed and emerging markets, including U.S. stocks. The index
