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

Leading Indicators

Understand the meaning and definition of Leading Indicators in the context of stock market, trading, and investments.

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Price Limit

Understand the meaning and definition of Price Limit in the context of stock market, trading, and investments.

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Position Limit

Understand the meaning and definition of Position Limit in the context of stock market, trading, and investments.

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Opening Sale

Understand the meaning and definition of Opening Sale in the context of stock market, trading, and investments.

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Wire House

Understand the meaning and definition of Wire House in the context of stock market, trading, and investments.

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Liquid

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

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