Intercommodity Spread

DEFINITION of 'Intercommodity Spread'

Going long on one futures market in a given delivery month and simultaneously going short on the same commodity and delivery month but a different futures market but with similar underlying asset.

BREAKING DOWN 'Intercommodity Spread'

Examples of intercommodity spreads include the crack spread (crude oil vs. unleaded gasoline) and the crush spread (soybean oil vs. soybean meal).

RELATED TERMS
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    An options or futures spread established by simultaneously entering ...
  2. Crush Spread

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  3. Current Delivery

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  4. Intermarket Spread

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  5. Delivery Point

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  6. Delivery Price

    The financial value of the conveyance of the underlying commodities ...
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RELATED FAQS
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  2. What's the difference between cash-on-delivery differ and delivery against payment?

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  3. Why do futures' prices converge upon spot prices during the delivery month?

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