box spread investment & finance definition
An arbitrage play in the options market in which both a bull spread and a bear spread are established in order to create a risk-free profit.
Box Size Chart Example
Below is a box size chart example of Citigroup. Notice how as the stock declined during the 2008 credit crisis, the point and figure box sizes adjusted accordingly.
Box - the physical location in a brokerage house where the securities are kept.
These are the securities they use to meet immediate obligations.
Also known the active box.
A box spread in futures contracts is a spread from two consecutive butterfly spreads, summing to +1 -3 +3 -1 in consecutive, or at least equally spaced, contracts.
Free box
Definition:
A bank vault or other suitable storage Place for the securities of a firm`s customer. ...
Darvas Box
The Darvas Box Theory was created by Nicolas Darvas and described in his first book, "How I Made $2,000,000 In The Stock Market" (1986, Lyle Stuart Kensington Publishing, New York).
Interpretation ...
Active box
Definition:
Securities that are held in safekeeping and are available as Collateral for securing brokers` loans or customers` margin positions. ...
Box spreads make use of a series of puts and calls to obtain the desired result. Within the context of this strategy, the investor may choose to follow a bull spread with a bear spread in order to create the desired balance between premium and payoff.
Darvas Box Theory
Investment Dictionary:
Darvas Box Theory
Home > Library > Business & Finance > Investment Dictionary ...
Cloud-in-a-Box Could Shift Development of Cloud Computing
Related Articles
Nuveen Investments announces online Investing Resource Center
Zynga Said to Demand Return of Stock Options
Tech IPOs Drop Off Quickly After First Day ...
The Annual Rates Box
Insider Decisions and why they matter
Taking a look at the 'Value Line'
Understanding Beta
Sizing up a Stock's Return ...
Tame Family Clutter -- The Saturday Box - By Cheryl L. Fuller, Ph.D.
Does this happen in your house? The kids come home and boots come off here, coats in a heap there.
Shorting against the box
A hedging technique used by investors to protect a profit until a later tax year. Essential this involves having a long position in a security and shorting an equal number of shares in that same security.
Selling short against the box
Definition:
Selling short stock that is actually owned by the seller but held in the box, meaning it is held in safekeeping.
Selling Short Against the Box
A short sale against the box of a stock is where the seller actually owns the stock, but does not want to close out the position.
Short Futures (1 Short September Euro FX Futures)
Synthetic Long Futures (Split Strike)
Long Butterfly
Long Straddle
Ratio Call Spread
Call Ratio Backspread
Box or Conversion / Reversal
Futures or Options?
Box Spread
A type of option arbitrage in which both a bull spread and a bear spread are established for a near-riskless position. One spread is established using put options and the other is established using calls.
Box Spread
An option position in which the owner establishes a long call and a short put at one strike price and a short call and a long put at another strike price, all of which are in the same contract month in the same commodity.
Box Size
In the context of Point & Figure Charts, the box size is the minimum price change that must occur for a given period before a mark (an X or an O) is added to the chart.
Box-Top Order ...
BOX: Boston Options Exchange Group L.L.C.
Box spread: A four-sided option spread that involves a long call and a short put at one strike price as well as a short call and a long put at another strike price.
Box spread. A compound option strategy that consists of four options with a common expiration date: a long call and a short put at one strike price, and a long put and a short call at a different strike price.
Box Spread - A complex 4 legged options trading strategy meant to take advantage of discrepanies in options prices for a risk-free arbitrage.
Learn More About Box Spreads.
Box-Jenkins Method From G.E.P. Box and G.M. Jenkins, who authored Time Series Analysis: Forecasting and Control.
Black Box
A proprietary computerized trading system whose formulas and calculations are not disclosed or readily accessible.
Ljung-Box statistic
A chi-square test of significance of higher order correlation existence. The marginal significance level is the probability that a no more higher order correlation exists.
Style Box - Graphical Representation of Mutual Fund's Investment Objectives ...
Black Box
A computer program designed to trade the market.
Blue Chip Stock ...
Style Box
Definition: The style box was created by Morningstar to plot all mutual funds on a three-by-three matrix.
Squawk Box - A speaker connected to a phone often used in broker trading desks.
Squeeze - Action by a central bank to reduce supply in order to increase the price of money.
Box size is determined by both stock price and volatility-the greater either is, the bigger the box size. Typically, box sizes vary from $0.50 for cheap stocks to several dollars for more expensive stocks.
Box, George E. P. and Jenkins, Gwilym M., 1976, Time Series Analysis: Forecasting and Control, (Holden Day Inc, USA)
Plummer, Tony, 1990, Forecasting Financial Market: The Truth behind Technical Analysis, (Kogan Page, U.K.) ...
Box Spread
A combination of a horizontal, or calendar, call spread and a horizontal put spread. Both spreads have the same expiration dates on their long and short positions. A bear call spread with a bull put spread is a credit box.
Box spread
This strategy refers to a type of option arbitrage in which both a bull spread and a bear spread are implemented for an almost-riskless position. One spread is implemented using put options and the other is implemented with calls.
The box is green, white or not filled, if the closing price is above the opening price, and if the closing price is below the opening price the box is filled, usually red or black.
The Box Ratio determines the ratio between height and width of the Equivolume box:
Volume [in millions] / (High - Low)
Ease of Movement is then calculated as:
Mid-point Move / Box Ratio ...
Check box to agree to these submission guidelines.
(You can preview and edit on the next page)
What Other Visitors Have Asked ...
Once a box forms, a buy stop order is placed to purchase the stock the moment it pushes through the top of the box. At the same time, an automatic stop loss order is entered just below the bottom of the box to protect the position.
Active Box
Securities held by a brokerage firm that meet specific qualifications are used as collateral for securing brokers' loans or customers' margin positions.
A price box to mark off the high and the low prices of the previous day will be displayed on the 1H chart, and each 24 hour period will be marked with a vertical line to distinguish the start/end of the day.
An email box (that I keep at my website) got corrupted or overloaded with spam. As a result for a couple of weeks, no emails arrived anymore in this particular email box. The only solution according to my ISP was to erase all emails and reset.
3. If the box pops up during your reconnection process, press O.K. after your connection is reestablished.
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*
Luminus Energy Partners Master Fund, Ltd.
(Last) ...
Do you use box options? Rodrigo: No. I don't like options. Not because of OANDA, but in general. Options are doubly difficult. Not only because you have to time the market itself, but also because time is against you.
In the list box at 1, I have selected ^GSPC. Clicking this stock symbol causes its data to appear on the above chart. It is a chart of the S&P 500 index. You can select any market index or stock you wish.
The comments box is wide open for your view on the app store situation. The Fool might trademark "comments box" if this nonsense continues.
Percentage box scaling increases the box size by a constant percentage (1%) every time the price rises above the current box.
Safe Deposit Box A fee-based service provided by banks that provide an area where customers can store important documents, jewels and other valuables.
INDEX STRATEGY BOX
A financial tool that categorizes exchange-traded funds (ETFs) and related products into nine grid shapes with each shape representing a specific index strategy.
Short Against the Box
Selling short stock owned long by the seller in the same account. Short position stock shares that an individual has sold short and has not covered as of a particular date. Sale of a stock not owned by the seller.
Short Put ...
Short against the box: When an investor takes a short position in a security (i.e., borrows a security and then immediately sells it, hoping to buy it back at a lower price in the future for a profit), even though he or she owns the security.
If the recap check box is checked, the ticker tape recapitulates the current quotes of all tracked instruments alphabetically. Recapitulated quotes show the price and the net change in price.
Buy - Assuming a 3-box reversal, count the number of boxes across the base of the formation that has given a buy signal. Multiply that number by 3 and add it to the price associated with the lowest X. Sell - Reverse for a sell signal.
The "Symbols" input box allows you to compare the relative price performance of your focus security to that of up to nine other symbols. You must separate each symbol by either a space or a comma.
AutoRegressive Integrated Moving Average (ARIMA): A linear stochastic model forecasting methodology described by Box and Jenkins in their book "Time Series Analysis, Forecasting and Control".
[Harvey] box Colloquial term referring to a trailer, semi-trailer, or container. [ITDS] box car A closed freight car.
selling short against the box A short sale of a given security, where the seller does own but does not want... selling the spread The action of selling when an option sold has a higher premium than the option bought.
NASDAQ OMX BOX Boston Options Exchange Group L.L.C. NASDAQ OMX PHLX Philadelphia Stock Exchange. NASDAQ Options Market Dissemination of quotations from the NASD and/or members thereof for the options market.
Box: A long call and a short put at one exercise price, and a short call and a long put at a different exercise price. All four options must have the same underlying entity and expire at the same time.
Close-out Last Trade Checking this box lets XecuteŽ know that you wish to participate in closing trades when these alerts are received from your advisory service.
The price range between the open and the close is plotted as a box or rectangle on the line. If the market closes above the open, the body of the box is white or empty. If the close is below the open, the body of the box or rectangle is black.
 See also: Market, Stock, Trading, Short, Long
|
