Definition of Combination:

  1. Combinations are composed of more than one option contract. Simple combinations include option spread trades such as vertical spreads, calendar (or horizontal) spreads, and diagonal spreads. More involved combinations include trades such as Condor or Butterfly spreads which are actually combinations of two vertical spreads. Some spread trades do not have recognized names and may simply be referred to generically as a combination spread or combination trade.

  2. Options trading: Arrangement involving two long positions (a long call and a long put) or two short positions (a short call and a short put) with different expiration dates and exercise prices.

  3. In options trading, a combination is a blanket term for any options trade that is constructed with more than one option type, strike price, or expiration date on the same underlying asset. Traders and investors use combinations for a wide variety of trading strategies because they can be constructed to provide specific risk-reward payoffs that suit the individual's risk tolerance and preferences and expectations for the current market environment.

  4. Mathematics: Arrangement in which the order or sequence of the items comprising a group is unimportant. In contrast, permutation is an arrangement where their order or sequence is critically important.

  5. Accounting: Amalgamation of two or more distinct firms into a single accounting entity.

Synonyms of Combination

Bund, Rochdale cooperative, Accompaniment, Accord, Accordance, Addition, Adjunct, Admixture, Affairs, Affiliation, Affinity, Agglomeration, Agglutination, Aggregate, Aggregation, Agreement, Alignment, Alliance, Alloy, Alloyage, Amalgam, Amalgamation, Approximation, Array, Articulation, Assemblage, Assembly, Association, Axis, Band, Blend, Blending, Bloc, Body, Bond, Bracketing, Brew, Building, Buildup, Cabal, Cahoots, Call-up, Canvass, Cartel, Census, Circle, Clique, Closeness, Clustering, Co-working, Coaction, Coadunation, Coalescence, Coalition, Coincidence, Collaboration, Colleagueship, Collection, Collectivity, College, Collegialism, Collegiality, Colligation, Collocation, Colloid, Collusion, Combine, Combined effort, Combo, Comminglement, Commingling, Commixture, Common market, Communication, Comparison, Composite, Composition, Compound, Comradeship, Concatenation, Concert, Concerted action, Concoction, Concomitance, Concordance, Concourse, Concurrence, Confection, Confederacy, Confederation, Confluence, Conflux, Confraternity, Congeries, Conglomerate, Conglomeration, Congregation, Conjugation, Conjunction, Connectedness, Connection, Consilience, Consolidation, Consortium, Conspiracy, Constitution, Construction, Consumer cooperative, Contiguity, Contrariety, Convergence, Cooperation, Cooperative, Cooperative society, Copartnership, Copartnery, Copulation, Corps, Corralling, Correspondence, Coterie, Council, Coupling, Credit union, Customs union, Data-gathering, Dealings, Decoction, Decoctum, Deduction, Disjunction, Eclecticism, Economic community, Embodiment, Emulsion, Ensemble, Fabrication, Faction, Fashioning, Federation, Fellowship, Filiation, Formation, Fraternalism, Fraternity, Fraternization, Free trade area, Freemasonry, Fusion, Gang, Gathering, Getup, Group, Grouping, Homology, Hookup, Identification, Identity, Immixture, Inclusion, Incorporation, Individuality, Indivisibility, Ingathering, Intactness, Integrality, Integration, Integrity, Intercommunication, Intercourse, Interfusion, Interlarding, Interlardment, Interlinking, Interminglement, Intermingling, Intermixture, Intimacy, Inventory, Inviolability, Irreducibility, Joinder, Joining, Jointure, Junction, Juxtaposition, Knotting, League, Liaison, Link, Linkage, Linking, Machine, Magma, Make, Makeup, Marriage, Meeting, Melding, Mergence, Merger, Merging, Mingling, Mix, Mixing, Mixture, Mob, Mobilization, Mosaic, Muster, Mutual attraction, Nearness, Oneness, Organic unity, Organization, Pairing, Parasitism, Particularity, Partnership, Party, Paste, Patchwork, Piecing together, Pluralism, Political machine, Pool, Propinquity, Proximity, Purity, Putting together, Rapport, Relatedness, Relation, Relations, Relationship, Ring, Rodeo, Roundup, Saprophytism, Selfsameness, Set, Setup, Shaping, Similarity, Simplicity, Simultaneity, Singleness, Singularity, Society, Sodality, Solidarity, Solidification, Solidity, Solution, Sorority, Splice, Structure, Structuring, Survey, Suspension, Symbiosis, Sympathy, Synchronism, Syncretism, Syndicate, Syndication, Syneresis, Synergy, Synthesis, Tie, Tie-in, Tie-up, Togetherness, Trust, Undividedness, Unification, Uniformity, Union, Uniqueness, United action, Unity, Univocity, Wholeness, Yoking

How to use Combination in a sentence?

  1. The team was successful and won the championship that year due to their great and amazing combination of skill and experience.
  2. The combination we decided to go with was quite a complementary relationship that fully explained the situation perfectly for us.
  3. Having a good combination of skills on your work team will help you to be able to combat any problems that come about.
  4. These trades can have a wide variety of strategies including extracting profit from up, down, or sideways trends in the market.
  5. Combinations offer carefully tailored strategies for specific market conditions.
  6. Combinations are option trades constructed from multiple contracts of differing options.

Meaning of Combination & Combination Definition