I'm trying to understand the concept of buying a spread. I've heard this term in financial markets but I'm not sure what it entails. Could someone explain what it means to buy a spread?
7 answers
Alessandra
Tue Dec 24 2024
Both the buying and selling occur within a single transaction.
Chloe_thompson_artist
Tue Dec 24 2024
Engaging in a spread transaction involves a specific options strategy.
GinsengBoost
Tue Dec 24 2024
Options strategies can become more complex when multiple contracts are involved.
Giulia
Tue Dec 24 2024
When these contracts have differing strike prices, they are collectively known as a spread.
Stefano
Tue Dec 24 2024
This strategy necessitates the purchase of a particular option.