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Options and Futures

Horizontal Spread

A common strategy in the world of finance is to engage in a purchase of either a call or put option, while simultaneously selling a similar option with the same strike price but a different expiration month. This tactic is known as a calendar spread and is widely used in the market. It allows investors to capitalize on the differences in price between the two options, ultimately maximizing potential profit.

Related terms

Market Reporter

Understand the meaning and definition of Market Reporter in the context of stock market, trading, and investments.

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Deferred (Delivery) Month

Understand the meaning and definition of Deferred (Delivery) Month in the context of stock market, trading, and investments.

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Registered Representative

Understand the meaning and definition of Registered Representative in the context of stock market, trading, and investments.

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Primary Dealer

Understand the meaning and definition of Primary Dealer in the context of stock market, trading, and investments.

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Settlement Price (futures)

Understand the meaning and definition of Settlement Price (futures) in the context of stock market, trading, and investments.

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