Dictionary
- Spread (futures)
- Long one future and short another. Both have the same underlier, but they have different maturities.
- Spread (options)
- The purchase of one option and the simultaneous sale of a related option, such as two options of the same class but different strike prices and/or expiration dates.
- Squeeze
- Situation in which investors who hold long positions feel the need to sell into a falling market to cut their losses, which leads to a further decline in market prices. Short squeeze is a situation in which the price of the stock rises and investors who sold short rush to buy it to cover their short position and cut their losses.
- Standard Deviation
- A statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns. More generally, a measure of the extent to which numbers are spread around their average.
- Sterling
- Trader jargon for the British Pound Sterling referring to the Sterling/US Dollar exchange rate.