Interdelivery Spread

DEFINITION of 'Interdelivery Spread'

Simultaneously entering a long and short on the same futures contract but with different delivery months in the hopes that the price difference between the two months widens or narrows, depending on the underlying investment.

BREAKING DOWN 'Interdelivery Spread'

Spread traders are only concerned that their long positions rise in value relative to their short positions. For example, if a trader is long June corn and short August corn, then the trader is hoping that the price of June corn rises and the price of August corn falls.

RELATED TERMS
  1. Intermarket Spread

    The simultaneous purchase of a given delivery month of a futures ...
  2. Calendar Spread

    An options or futures spread established by simultaneously entering ...
  3. Spot Delivery Month

    The nearest month when a futures contract matures. The spot delivery ...
  4. Commodities Exchange

    An entity, usually an incorporated non-profit association, that ...
  5. Corn/Hog Ratio

    A feed ratio used to determine the profitability of raising livestock. ...
  6. Demand Curve

    The demand curve is a graphical representation of the relationship ...
Related Articles
  1. ETFs & Mutual Funds

    Is This ETF the Best Way to Trade Corn?

    With corn down some 60% since its 2012 high, a recent bounce higher was welcome. But several key resistance levels are suggesting a continued downtrend.
  2. Markets

    Corn's Bullish Base Could Yield 2016 Breakout (CORN)

    Corn is building an inverse head and shoulders base that could support a rally above 500.
  3. Trading

    Investing Seasonally In The Corn Market

    Each month can bring new growth opportunities, if you know where the right investment seeds are.
  4. Markets

    Corning Incorporated to Trade Ex-Dividend (GLW)

    Corning will send dividend payments on March 31 to shareholders of record.
  5. ETFs & Mutual Funds

    Trade The Rise In Agriculture Commodities

    The weather has triggered a move in agriculture commodities. We'll take a look at several charts that are poised for a move higher.
  6. ETFs & Mutual Funds

    Strategic Traders Are Turning To Agriculture

    As summer approaches many commodity traders are looking for opportunities at the agriculture sector. We'll take a look at a few picks for how to trade the move higher.
  7. ETFs & Mutual Funds

    GLW: Top 4 Mutual Fund Holders of Corning Inc

    Discover Corning's four largest mutual fund investors, and learn which actively managed fund has been accumulating the most shares of Corning stock.
  8. ETFs & Mutual Funds

    Agriculture Commodities Are In The Bear's Sights

    Agriculture stocks have experienced strong moves higher over recent weeks, but chart patterns on sugar, corn and wheat are suggesting the moves could be short lived.
  9. Markets

    Analyzing The 5 Most Liquid Commodity Futures (WTI, ZC)

    Crude oil leads the pack as the most liquid commodity futures market, followed by corn and natural gas.
  10. Markets

    Corning Reaches Into the Cloud for New Acquisition

    CorningĀ (NYSE: GLW) is expanding its specialty glass empire. The company announced last week that it has reached an agreement to acquire Alliance Fiber Optic Products (NASDAQ: AFOP). The price ...
RELATED FAQS
  1. How is the price of a derivative determined?

    Learn how different types of derivatives are priced, including how futures contracts are valued and the Black-Scholes option ... Read Answer >>
  2. Why do futures' prices converge upon spot prices during the delivery month?

    It's a fairly safe bet that as the delivery month of a futures contract approaches, the future's price will generally inch ... Read Answer >>
  3. How do futures contracts roll over?

    Learn about why futures contracts are often rolled over into forward month contracts prior to expiration, and understand ... Read Answer >>
  4. How do I learn technical skills for trading commodities?

    Learn what resources are available to learn about trading commodities, and understand some of the differences between stocks ... Read Answer >>
  5. What kinds of derivatives are traded on an exchange?

    Learn about the different types of derivatives traded on exchanges, including options and futures contracts, and discover ... Read Answer >>
  6. What's the difference between a long and short position in the market?

    Understand long and short positions for stocks and option contracts; combine long and short positions for added leverage ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center