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.

Use spread in a sentence

Before you could eat, you had to spread the butter all over the bread, so it would have a nice flavor to it.

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You should try and spread out your funds over many different investments so that you don't have to much liability in one.

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I wanted to buy stock in the company, but the price history and spread would probably not have netted any real short-term gains for me.

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