Spread
1. The difference between the bid and the ask price of a security or asset.
2. An options position established by purchasing one option and selling another option of the same class but of a different series. Investopedia Says:
1. The spread for an asset is influenced by a number of factors:
a) Supply or "float" (the total number of shares outstanding that are available to trade)
b) Demand or interest in a stock
c) Total trading activity of the stock
2. For a stock option, the spread would be the difference between the strike price and the market value. Related Terms:
Ask
Bear Spread
Best Ask
Best Bid
Bid
Bull Call Spread
Bull Spread
Butterfly Spread
Haircut
Outright Option
Slippage
Spread Betting
Strike Price |