DEFINITION of 'Spread'
1. The difference between the bid and the ask price of a security or asset.
2. An options position established by purchasing one option and selling another option of the same class but of a different series.
INVESTOPEDIA EXPLAINS 'Spread'
1. The spread for an asset is influenced by a number of factors:
a) Supply or "float" (the total number of shares outstanding that are available to trade)
b) Demand or interest in a stock
c) Total trading activity of the stock
2. For a stock option, the spread would be the difference between the strike price and the market value.
An indicator that shows the difference between the bid and ask ...
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The price at which a specific derivative contract can be exercised. ...
An agreement that establishes a predetermined spread for future ...
An individual who acts as the counterparty in a swap agreement ...