Interdelivery Spread

What Does Interdelivery Spread Mean?
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

Calendar Spread
Delivery Month
Futures
Intercommodity Spread
Long
Short
More Related Terms

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