The price difference refers to the futures price difference of different grades, different delivery months, different commodities and different delivery locations. It also refers to the price difference of the same commodity due to various conditions, such as wholesale and retail price difference, regional price difference and seasonal price difference. The difference between buying and selling goods is the main part of some businessmen's profits. Deposit-loan spread: it is the interest difference between all deposits and all loans of the bank; Net interest margin: As the deposits absorbed by banks are not fully used for lending, a part of the deposit reserve (interest paid by the central bank) must be used for buying central bank bills, bonds and other investments. Compare the loan interest rates with the interest rates of all deposits to obtain interest margin.
Second, what is the overnight spread?
In the foreign exchange market, all positions (transactions) must be settled within 2 days. If a trader sells 65,438+00,000 euros on Tuesday, theoretically he must take out 65,438+00,000 euros to close his position on Thursday, unless the position of this euro is postponed to the next liquidation day. Overnight interest is usually paid at 5 pm EST. Any extension of foreign exchange positions will generate hedging, or this spread will be determined by the interest rate of overnight bank loans. If the investor has a currency with higher interest rate, the investor can get the interest rate spread of the currency when the foreign exchange position is extended. The spread varies according to the daily price changes and the trading volume of foreign exchange positions.
Every day at 5: 00pm new york time, the overnight interest will be automatically increased or decreased in the trader's account.
Wednesday overnight interest calculation
The usual interest spread on Wednesday will be more than 3 times larger than usual, because the extension of foreign exchange positions (3 days) will add the weekend period.
explicitly
When the exhibition is extended from Monday to Tuesday, the closing date ends from Wednesday to Thursday.
When the position is extended from Tuesday to Wednesday, the liquidation day ends from Thursday to Friday.
When the position is extended from Wednesday to Thursday, the closing date ends from Friday to next Monday (Friday, Saturday and Sunday). [Closed on Saturday and Sunday, but interest is calculated].
When the position is extended from Thursday to Friday, the closing date ends from Monday to Tuesday.
When the position is extended from Friday to Monday, the liquidation day will end from Tuesday to Wednesday.
The total interest for one week is the sum of seven days. ..
3. What do you mean by spread and spread?
Hello, classmate, I'm glad to answer your question!
Interest spread is the source of profit. If the margin financing and securities lending business is limited to the lending behavior in the transaction process, it is necessary to clarify the borrower and lender, the source of funds and the pledge carrier in the lending process, which involves the custody of the securities itself as the pledge carrier. In the United States, if a customer does not explicitly ask for a cash account and real name when opening an account, all the securities he holds are registered in the name of the brokerage firm, which is called secondary custody in the industry, also known as "street name". Brokers can obtain a credit line of more than twice the total amount of pledged securities through their clearing banks, and indirectly conduct financing transactions on customers' credit accounts. Funds are either provided by its clearing bank or credit is obtained through its clearing bank system. This kind of loan is called a brokerage company loan, and the same sum of money is called securities at the client, and the spread exceeds 1.75%. The income obtained by securities companies is the net interest margin profit. It can be understood that bank credit is the difference between deposit and loan, and securities financing is the difference between loan and loan. In the United States and Hong Kong, the margin income brought by margin financing and securities lending has accounted for about 20% of the business income of securities companies, and the margin financing and securities lending business has a quite mature market. The rapid growth of loans will make a positive contribution to the interest margin of banks.
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What do you mean by price difference and spread?
Hello, classmate, I'm glad to answer your question!
The word you said belongs to the vocabulary of futures industry. Mastering the vocabulary of futures industry can make you feel at home in the study of futures industry. The translation and meaning of this word are as follows: buy an option and sell another option of the same level but different series.
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Gao Dun wishes you a happy life!