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. Calendar Spread

    An options or futures spread established by simultaneously entering ...
  2. Short (or Short Position)

    A short position is the sale of a borrowed security, commodity ...
  3. Delivery Month

    A key characteristic of a futures contract that designates when ...
  4. Long (or Long Position)

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

    A financial contract obligating the buyer to purchase an asset ...
  6. Intercommodity Spread

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