InvestorWords.com

spread

Definitions (3)

1. The difference between the current bid and the current ask (in over-the-counter trading) or offered (in exchange trading) of a given security; also called bid/ask spread.

2. The purchase of one option and the simultaneous sale of a related option, such as two options of the same class but different strike prices and/or expiration dates. also called spread option.

3. More generally, the difference between any two prices.

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