spread (or straddle)
- A strategy used in futures and options trading to profit from a change in price relationships where one delivery month of a commodity is purchased and another sold, or two different commodities are traded against each other, or the same commodity is traded in different markets
- The investor enacted a spread (or straddle) when he purchased February wheat futures and sold April wheat futures.
- To take advantage of the market fluctuation, a spread (or straddle) was used where gold was bought in the New York market and sold in the London market.
- The trader applied a spread (or straddle) in options trading to try and reduce potential losses.
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