spread order(redirected from Spread Orders)
An order listing the series of options that the customer wants to buy and sell and the desired spread between the premiums paid and received for the options.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
An order to a broker to buy and sell different options on the same underlying asset but for different premiums and/or strike prices. The client who makes the spread order hopes to profit from the difference between the prices in the options sold and the options bought. See also: Spread strategy.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
An order to buy and to sell options of the same class but with different strike prices and/or expiration dates in which the customer specifies a spread between the option sold and the option purchased. For example, an investor might enter a spread order to buy a March call and sell a September call, both on AOL Time Warner and with a strike price of $30, if a spread of $2 can be obtained. The order will be executed only if a floor broker can sell the September call for $2 more than the price at which the March call can be purchased.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.