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SpreadThe difference between the price one must pay to buy something, such as a currency, and the price one receives for selling it.SpreadThe difference between the bid price and the offer price for shares and for units in a unit trust. Market makers make their profit from the spread. They buy shares at the lower bid price and sell at the higher offer one.Spread(1) The gap between bid and ask prices of a stock or other security. (2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. Also known as a straddle. (3) Difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. (4) The price an issuer pays above a benchmark fixed-income yield to borrow money.Spread Similar MatchesCrack spreadCrack spreadA type of commodity-product spread involving the purchase of crude oil futures and the sale of gasoline and heating oil futures. BackspreadBackspreadA delta-neutral spread composed of more long options than short options on the same underlying instrument. This position generally profits from a large movement in either direction in the underlying instrument. NOB spreadNOB spreadNotes over bonds spread. This is the difference in yield between Treasury notes (maturing in 2 to 10 years) and Treasury bonds (maturing in 15 or more years), which is traded using Treasury note and bond futures. Ratio spreadRatio spreadOption strategy using either puts or calls. The trader purchases a certain number of options and then sells a larger number of out of the money options. Intracommodity spreadIntracommodity spreadUsed in the context of futures trading to refer to a trader holding, buying, and selling contracts in the same commodity on the same exchange, but for different months. Further SuggestionsDebit spreadRatio Spread Spreadsheet Yield spread Mob spread Credit spread Bull spread Box spread Spread position Butterfly spread Dealers spread bear call spread Narrowing the spread Option spread Vertical spread bear spread Spread strategy Delta Spread Generic credit spread Perpendicular spread credit spread Bid asked spread Alligator spread Bid/ask spread bear put spread |
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