 |
Definition of 'Negative Butterfly'
A non-parallel yield curve shift in which long- and short-term yields decrease by a greater degree than intermediate rates. This yield curve shift effectively humps the curve, adding to the curvature of the yield curve.
|
 |
Investopedia explains 'Negative Butterfly'
For example, a negative butterfly shift can happen when short- and long term-rates decrease by 75 basis points (0.75%), while intermediate rates only decrease by 50 basis points (0.50%).
This is the reverse of a positive butterfly, in which short- and long-term rates increase more than intermediate rates.
|
Search results for 'Negative Butterfly'
-
http://www.investopedia.com/articles/optioninvestor/10/modified-butterfly-spread.asp
... One negative associated with the modified butterfly versus the standard butterfly;
while the standard butterfly spread almost invariably involves a favorable ...
-
http://www.investopedia.com/university/optionvolatility/volatility5.asp
... Credit Spread, Negative, Lose, Gain. Debit Spread, Positive, Gain, Lose. Butterfly
Spread, Negative, Lose, Gain. Calendar Spread, Positive, Lose, Gain. ...
-
http://www.investopedia.com/articles/optioninvestor/07/derivatives_retail.asp
... are four fundamental problems that contribute to derivatives' negative image: ... Next
comes bull spreads, bear spreads, calendar spreads, butterfly spreads, strips ...
-
http://www.investopedia.com/articles/tags/trading_strategies/
... Read More »; Adjusting A Long Call Into A Butterfly Spread. ... Positive and negative
trading experiences can affect the way you trade. Find out how. Read More »; ...
-
http://www.investopedia.com/articles/tags/Trading_Strategies/
... Read More »; Adjusting A Long Call Into A Butterfly Spread. ... Positive and negative
trading experiences can affect the way you trade. Find out how. Read More »; ...
-
http://www.investopedia.com/articles/optioninvestor/09/hedging-iron-condors-put-calendars.asp
... have likely used or considered using long puts to hedge a position; however, a calendar
can be more efficient because it turns a negative theta position into a ...
|
|
