Spread

Spread The difference between the bid and the offer price of a share on the floor of the stock exchange. If a share is bid at Rs 64 and offered at Rs 66, the JOBBER’S spread will be Rs. 2. The spread is large or small, depending upon the demand and supply of shares in the market. The more frequently and voluminously a share is traded in the exchange, the less will be the jobber’s spread. In OPTIONS trading, spread is the simultaneous buying of call and put options, at different striking prices of different expiry dates, of the same goods or security. See OPTIONS TRADING.

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