Five Against Note Spread - FAN

AAA

DEFINITION of 'Five Against Note Spread - FAN'

A spread in the futures markets created by taking offsetting positions in futures contracts for five-year treasury notes and ten-year treasury bonds.

INVESTOPEDIA EXPLAINS 'Five Against Note Spread - FAN'

A FAN spread is created by either buying a futures contract for five-year treasury notes and selling a futures contract for ten-year treasury bonds or vice versa. Investors speculating on interest rate fluctuations will enter into this type of spread in hopes of under or overpriced treasuries.

RELATED TERMS
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  2. Treasury Note

    A marketable U.S. government debt security with a fixed interest ...
  3. Spread

    1. The difference between the bid and the ask price of a security ...
  4. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, ...
  6. Cheapest to Deliver - CTD

    In a futures contract, the cheapest security that can be delivered ...
Related Articles
  1. Using Open Interest To Find Bull/Bear ...
    Options & Futures

    Using Open Interest To Find Bull/Bear ...

  2. Intro To Open Interest In The Futures ...
    Options & Futures

    Intro To Open Interest In The Futures ...

  3. Interpreting Volume For The Futures ...
    Options & Futures

    Interpreting Volume For The Futures ...

  4. Options On Futures: A World Of Potential ...
    Options & Futures

    Options On Futures: A World Of Potential ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center