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Describing two or more related trades one makes at the same time. Tandem trades are most common when an investor wishes to profit from a spread, or the difference in price between two securities. See also: Exotic option.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The entering into two trades at the same time. An investor who sells a July futures contract and buys a September futures contract is engaging in a tandem trade.
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.