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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

Series

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

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Clearinghouse

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

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Suspension

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

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Out-Trades

Understand the meaning and definition of Out-Trades in the context of stock market, trading, and investments.

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Certificate of Deposit (CD)

Understand the meaning and definition of Certificate of Deposit (CD) in the context of stock market, trading, and investments.

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Hedger

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

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