| InvestHub.com's Finance Dictionary and Glossary of Investment Terms Spread Definition 1.
(1) The gap between bid and ask prices of a stock or other security. (2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. Also known as a straddle. (3) Difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. (4) The price an issuer pays above a benchmark fixed-income yield to borrow money. | Definition 2.
Definition 1 | Definition 3.
The difference between the bid price at which a Market Maker will buy a security, and the ask price at which a Market maker will sell a security. (See inside spread) | Definition 4.
1. The difference between the bid and the ask prices 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. |
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