There is a word spreading business that applies to finance. A spreading business, or a relative value business, is a sale in addition to purchasing a security simultaneously Related Security. Spreading business options or future contracts can be implemented.
The idea behind spreading business is simple; This protection is to reduce the risk on holding a long or short position. The spreading business associated with the long term and short position in the corresponding term. It allows the merchant to evaluate the market by evaluating the market and to reduce the risk and hedgehog against the major benefits or losses on the goods item.
In the end, it is important to know different types of spread trades. There is intracommodity which disperses the trade in a similar commodity compared to a commodity trade which has transmitted trade in various commodities. There are intermarketes that are traded in the same exchange versus Intermark, which is the spread of spread spread across different exchanges. Ultimately, internationalism is matched in the same delivery month compared to international delivery, which is matched in various delivery months.