Trading strategy

Definition:

A disciplined method of buying and selling assets that involves working within a predefined set of rules for making trading decisions. Examples are the covered position, CPPI, index arbitrage and multirule system.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Time spread strategy

Buying and selling puts and calls with the same exercise price but different expiration dates, and trying to profit from the different premiums of the options.

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