Categories
Investments glossary

Horizontal Spread

A horizontal spread (more commonly known as a calendar spread) is an options or futures strategy created with simultaneous long and short positions in the derivative on the same underlying asset and the same strike price, but with different expiration months. The goal is usually to profit from changes in volatility over time or exploit fluctuation in pricing from short-term events. The spread can also be used as a method for creating significant leverage with limited risk.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *