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Webster's New World Finance and Investment Dictionary » intramarket spread
intramarket spread
intramarket spread definition - finance
A
situation in which futures contracts for the same commodity are bought for one
month and sold for another month. For example, August heating oil contracts are
purchased, and September heating oil contracts are sold. Intramarket spreads
are very common. Spread trades on most exchanges qualify for lower commission
rates and lower margin requirements. Traders use intramarket spreads to make a
profit in the future direction of prices. They also use this to roll over their
position from one month to another. Also called interdelivery spread.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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