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

Supply, Law of

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

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Variable Limit

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

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Type

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

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Buy On Close

Understand the meaning and definition of Buy On Close in the context of stock market, trading, and investments.

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Round-Turn (futures)

Understand the meaning and definition of Round-Turn (futures) in the context of stock market, trading, and investments.

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