spread buying

17:55 Dec 29, 2005
This question was closed without grading. Reason: No acceptable answer

English to French translations [PRO]
Bus/Financial - Finance (general) / Futures trading
English term or phrase: spread buying
Selling contracts for a particular month and buying other contracts with the money in order to take advantage of the price difference between the two contracts is called spread buying.

Je ne sais pas comment traduire ce terme en français.

Voici la phrase en question:

Much of the market's strength could be attributed to spread buying that reduced the March discount to 1 point early on.
Poitras (X)
Local time: 19:06


Summary of answers provided
3achat de couverture
Martine Brault
3arrbitrage
Adil Uskudarli


Discussion entries: 1





  

Answers


51 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
achat de couverture


Explanation:
ou contrepartie d'achat
as in buying hedge , perhaps?

En voici la définition en anglais et en français selon Termium:

The "buying hedge" protects against price increases. Suppose an exporter sells a cargo of grain for delivery in six months. If the exporter buys the grain upon receipt of the order, to ensure a supply at a known price, capital would be tied up and storage, insurance and interest costs incurred. If [he] waits until the delivery date to buy the grain, there is the risk of a price increase. However, by buying a contract in the futures market, [he] establishes the price and ensures a supply to meet his commitment, without paying holding costs other than those built into the price. Source

La «contrepartie d'achat» protège contre les hausses de prix. Supposons qu'un exportateur vend une cargaison de grain pour livraison dans six mois. S'il achète le grain dès qu'il reçoit la commande pour s'assurer un approvisionnement à un prix connu, il immobilise par le fait même des capitaux et doit assumer des frais d'entreposage, d'assurance et d'intérêt. S'il reporte l'achat du grain à la date de livraison, il court le risque d'une hausse des prix. Toutefois, en achetant un contrat au marché à terme, il établit son prix et peut s'assurer les approvisionnements requis pour respecter ses engagements, sans payer de frais de détention. Source

Martine Brault
Canada
Local time: 19:06
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in FrenchFrench
PRO pts in category: 224
Grading comment
Un achat de couverture est l'achat d'un contrat à terme plutôt qu'un achat de marchandise. Le "spread buying" consiste à vendre un contrat à terme pour en acheter un autre qui semble plus avantageux.
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The asker has declined this answer
Comment: Un achat de couverture est l'achat d'un contrat à terme plutôt qu'un achat de marchandise. Le "spread buying" consiste à vendre un contrat à terme pour en acheter un autre qui semble plus avantageux.

15 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
arrbitrage


Explanation:
I don't see why this could not be considered as arbitrage since the difference of crossrates is the basis of the transaction

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Note added at 15 mins (2005-12-29 18:11:13 GMT)
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of courses arbitrage


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Note added at 3 hrs 29 mins (2005-12-29 21:25:10 GMT)
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I understand that it is the same market but the basis is the same, that is the difference in crossrates. Mine was just a guess since I don't think they would say "l'achat d'écart," by the way they use the same English term quite often. . .

Adil Uskudarli
Local time: 19:06
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in TurkishTurkish
PRO pts in category: 3
Grading comment
Arbitrage: The simultaneous purchase and sale of similar commodities in different markets to take advantage of a price discrepancy.

In my case, the buying and selling go on in the same market (New York raw sugar). Spread buying is, for instance, selling the March contract because it is probably at a high, and buying May with the money because May did not follow March into the high.
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The asker has declined this answer
Comment: Arbitrage: The simultaneous purchase and sale of similar commodities in different markets to take advantage of a price discrepancy.

In my case, the buying and selling go on in the same market (New York raw sugar). Spread buying is, for instance, selling the March contract because it is probably at a high, and buying May with the money because May did not follow March into the high.



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