What is Spread?

Investing term that generally describes the difference between the lowest ask price and highest bid price for the same asset. Specifically for commodity assets, it is referred to as a straddle: investors purchase two or more call options for the same product at different prices and different delivery dates. Straddling allows investors to mitigate losses.

What people ask…

What are spreads in stocks?
How do you calculate spread?
What are spreads in trading?
What are spreads in jail?

See Also…

Commodity, Asset Class, Markup

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