Spread Trade
/ˈspred treɪd/
Definitions
- (n.) A trading strategy involving simultaneous buying and selling of related financial instruments to profit from the price difference between them.
The investor executed a spread trade to hedge against market volatility.
Forms
- spread trade
- spread trades
Related terms
See also
Commentary
Spread trade commonly features in derivatives markets; precise terms vary by contract and jurisdiction.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.