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Spread

Trading Term

  1. In trading, this term refers to the distance between the bid and ask prices being quoted. If XYZ stock has a bid of 21.45 and an ask of 21.51, then the spread on this stock is 0.06.
  2. Simultaneously buying one option and selling a related option. For example, a spread might include two options of the same class but with different strike prices or expiration dates.

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