Interdelivery Spread

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.

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.

Investment dictionary. . 2012.

Look at other dictionaries:

  • interdelivery spread — The purchase of one delivery month of a given futures contract and simultaneous sale of another delivery month of the same commodity on the same exchange. Also referred to as an intramarket or calendar spread. Chicago Board of Trade glossary Used …   Financial and business terms

  • intramarket spread — A futures spread trade where one delivery month is sold and another bought in the same underlying product. Such a trade is entered into in order to take advantage from an expected change in the price differential between the two delivery months.… …   Financial and business terms

  • butterfly spread — The placing of two interdelivery spreads in opposite directions with the center delivery month common to both spreads. Chicago Board of Trade glossary Established by buying an at the money option, selling 2 out of the money options, and buying an …   Financial and business terms

  • Calendar Spread — An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread. An… …   Investment dictionary

  • Спрэд Внутрибиржевой — англ. interdelivery, intramarket spread покупка фьючерсного контракта с определенной датой расчета с одновременной продажей фьючерсного контракта того же объема с другой датой расчета на одной и той же бирже. Словарь бизнес терминов. Академик.ру …   Словарь бизнес-терминов

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