Understand the market-maker spread as the price gap between buying and selling offers by market makers, and how it compensates for market-making risks.

Understanding spreads in the futures market is important for farmers to hedge their positions effectively and can help to maximize a farm operation’s profitability. What Is the Spread? The spread is ...

What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...

Spread trading is a more advanced stock trading strategy that involves the simultaneous buying and selling of different stocks. Unlike traditional long-only or short-only strategies, spread trading ...

A bear put spread is a vertical spread that aims to profit from a stock declining in price. It has a bearish directional bias as hinted in the name. Unlike the bear call spread, it suffers from time ...

Let’s start by stating the obvious. Commodities exist in the physical world. That means they are very different from stocks, bonds or cryptocurrencies. Those asset classes can move around the world ...

Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike. Traders can use calls or puts and they can be set up to be neutral, ...

When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...