Interdelivery Spread

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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.

INVESTOPEDIA EXPLAINS '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. Short (or Short Position)

    1. The sale of a borrowed security, commodity or currency with ...
  2. Delivery Month

    A key characteristic of a futures contract that designates when ...
  3. Calendar Spread

    An options or futures spread established by simultaneously entering ...
  4. Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, ...
  5. Intercommodity Spread

    Going long on one futures market in a given delivery month and ...
  6. Futures

    A financial contract obligating the buyer to purchase an asset ...
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