Package Deal


DEFINITION of 'Package Deal'

An order that contains a number of exchange or deposit items that must be completed simultaneously, or not at all. Package deals allow traders to ensure specific prices or times to maturity for multiple assets.

BREAKING DOWN 'Package Deal'

A trader may want to participate in a package deal to properly execute an investment strategy. For example, let's say an investor wants to enter into a long-short strategy, where he or she purchases one stock and short sells another. Making this order a package deal will protect the investor in case either stock is not immediately available for purchase or sale. The investor may not want the exposure of being only long or short for the period of time required to complete the second transaction.

  1. Market Exposure

    The amount of funds invested in a particular type of security ...
  2. Financial Exposure

    The amount that one stands to lose in an investment. For example, ...
  3. Contingent Order

    1. An order involving the simultaneous execution of two or more ...
  4. Short (or Short Position)

    A short position is the sale of a borrowed security, commodity ...
  5. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, ...
  6. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
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