* Site-Outage Notice: Our engineering elves will be tweaking the Shmoop site from Monday, December 22 10:00 PM PST to Tuesday, December 23 5:00 AM PST. The site will be unavailable during this time.
Dismiss
© 2014 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Alligator Spread

Definition:

There are two definitions here - one relates to the centerfold out glossy pages of PlayGator magazine. At Shmoop, we are fans of the new Go Green theme.

The other definition relates to a situation where broker commissions "eat up" any profits that would have been available to making a trade, usually in reference to a derivatives trade involving put options and call options. The commissions in this case were so high that the trade doesn't make sense to execute.

Advertisement