abstract:In finance, a spread trade is the simultaneous purchase of one security and sale of a related security, called legs, as a unit. Spread trades are usually executed with options or futures contracts as the legs, but other securities are sometimes used.
The destructive carp could spread within the Great Lakes and threaten fishing and trade.
VOA: special.2009.12.15
Trade exchanges spread ceramics all over the world.
VOA: special.2009.09.09
Thus, one analyst suggests anybody wanting to take a longer-term spreadtrade in favor of platinum might consider tip-toeing into a position rather than racing full speed ahead.
In order to have a corresponding ounce-to-ounce spreadtrade in the futures market, a trader who is looking for the spread to narrow would buy two 50-ounce platinum futures contracts and simultaneously sell one 100-ounce gold futures contract.