Term of the Day: Alligator Spread

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	INVESTOPEDIA Term Of The Day June 5, 2015 Alligator Spread An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market movements. An alligator spread is usually used in the options market to describe a collection of put and call options that may not be profitable. Investopedia Explains: Pricing models and a more efficient market can help reduce the traditional spread on a security, but it is commissions that create the alligator spread... Read More Articles Related to "Alligator Spread" The Basics Of The Bid-Ask Spread You've probably heard the terms spread or bid and ask spread before, but you may not know what they mean or how they relate... Read More Sponsored By: Nadex Introduction To Binary Options Binary options may sound complicated, but they're really not. In fact, they offer traders alternative... Read More What is an alligator spread? An alligator spread refers to a financial position (a unique combination of put and call options) that is unprofitable because of the high commission... Read More Top U.S-Regulated Option Brokers Getting started in options trading in the United States requires depositing significant upfront capital into an option... Read More Recently Added Definitions Exchange-Traded Mutual Funds (ETMF) An ETMF, or exchange-traded mutual fund, is an exchange-traded security that is a hybrid between an exchange-traded fund (ETF) and an... Read More Record Date The cut-off date established by a company in order to determine which shareholders are eligible to receive a dividend... Read More Related Definitions Spread Commission Option Broker Market Hot Definitions Deflationary Spiral Negative Interest Rate Policy (NIRP) Nordic Model Insurance Inflation Protection Welfare Capitalism You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: