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Package Deal

Definition

Package Deal is a Canadian television sitcom created by Andrew Orenstein about three brothers and the woman who comes between them. It debuted on City on June 18, 2013 and ran for two seasons.

What is '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.

Explaining '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.


Further Reading




Q&A About Package Deal


Why would you want to enter into a long-short strategy?

To properly execute an investment strategy.

How does making your order a package deal protect you from being exposed to only one side of the transaction for the period of time required to complete the second transaction?

It doesn't expose you because it's already been done. You're either long or short, and now it's just waiting on completion of both transactions.

How can you protect yourself if the stock you want to short sell isn't immediately available for purchase or sale?

By making it part of a package deal.

What is a package deal?

A package deal is an order that contains multiple exchange or deposit items that must be completed simultaneously, or not at all.