FAB (five against bond) spread
- The process of simultaneously buying a five-year Treasury note futures contract and selling a long-term Treasury bond futures contract, or vice versa
- He made a profit through a FAB (five against bond) spread by purchasing five-year Treasury note futures and selling long-term Treasury bond futures.
- The FAB (five against bond) spread is a common strategy for mitigating risk in futures trading.
- The financial analyst advised using a FAB (five against bond) spread as part of a diversified investment strategy.