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.
futures or options trading techniques that entail buying one month of a contract and selling another month of the same contract. For example, buying a June electricity contract and simultaneously selling a September electricity contract. A market participant can profit (or lose out) as the price difference between the contracts widens or narrows.
interest rate futures intracommodity spread
The purchase of one delivery month of a given commodity futures contract and the simultaneous sale of another delivery month of the same commodity futures contract on the same exchange.
Technique used in trading options or futures. Contracts expiring in one month are bought and the same contracts expiring in a different month are sold--for example, buying a May cotton contract and simultaneously selling an August cotton contract. The investor aims to profit when the price between the two contracts narrows or widens. See: Futures Contract; Options; Spread
A spread involving two different months of the same commodity. Also called an intracommodity spread. See Spread.