bull spread

Definition of "bull spread"
  1. A trading strategy that involves buying and selling options or futures contracts with different prices or delivery dates, aiming to profit from an increase in prices, but limiting potential loss if prices don't rise
How to use "bull spread" in a sentence
  1. The investor used a bull spread to try to profit from the expected price increase of the stock.
  2. A bull spread can limit potential losses if the price increase doesn't happen as expected.
  3. In order to manage risk and potential profit, the trader decided to use a bull spread strategy.

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