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Derivatives




Interdelivery Spread


A futures or option trading technique that involves buying a contract with a given expiration or delivery month and selling the same contract with another expiration or delivery month. The difference between the payoffs of the two positions makes the spread.

For example, an investor could buy a May contract and simultaneously selling a August contract on the same underlying. Depending on his position, the investor could benefit as the price difference between the two contracts widens or narrows.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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