| Spread |
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The
difference between the bid and the ask prices of a security or asset.
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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The
spread for an asset is influenced by a number of factors such as:
1)
Supply or "float" (the total number of shares outstanding available
to trade)
2)Demand or interest in a stock
3)Total trading activity in the stock. |
For
a stock option the spread would be the difference between the strike
price and the market value.
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Dictionary
