Spread

1. Commodities trading: Difference between the buying and selling price of the same commodity in (1) different delivery months in the same market (exchange) or (2) in different markets but in the same delivery months. Also called bid and asked spread. 2. Foreign exchange: (1) Difference between a long position in one currencyand a short position in another, or (2) between different delivery dates of the same currency. 3. Investments: Diversity of an investment portfolio; greater the spread, lesser the chance of crippling losses or spectacular gains. 4. Securities trading: Difference between the (1) buyer's price (bid) and theseller's price (offer) which increases or decreases in step with the demand and supply of the security, (2) return (yield) from ... Learn more about this term Usage Example The spread of a security, commodity or other investment is what traders make their profit off of - the higher the investor sells it for, the bigger the spread and the compensation.

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