Spreading
Definition
The simultaneous buying and selling of two related markets in the expectation that a profit will be made when the position is offset. Examples include: buying one futures contract and selling another futures contract of the same commodity but different delivery month; buying and selling the same delivery month of the same commodity on different futures exchanges; buying a given delivery month of one futures market and selling the same delivery month of a different, but related, futures market.
Related Terms Other terms related to 'Spreading' starting with the letter 'S' Stock Market, Selling Hedge or Short Hedge, Steer Corn Ratio, Scalper, Settlement Price
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