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Options and Futures

Spreading

In finance, there is a technique called "arbitrage" that involves buying and selling two related markets at the same time in hopes of making a profit. This can be done in various ways, such as buying one futures contract and selling another of the same commodity but with a different delivery month. Alternatively, one could buy and sell the same delivery month on different futures exchanges, or even buy a certain delivery month on one market and sell the same on a related market.

Related terms

Settlement Price

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

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Nearby

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

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Floor Broker

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

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Closing Range

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

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Intercommodity Spread

Understand the meaning and definition of Intercommodity Spread 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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