The bid-ask spread describes the gap between the price buyers are offering for a security and the price that sellers are willing to accept. This difference develops from supply and demand, trading ...

What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...

The use of leverage is one way for an investor to enhance their returns, with the accompanying risk of magnifying the losses. There are several means to employ leverage. One option for some investors ...

The term ‘spread’ can have several different interpretations depending on where it is used in the financial space. A spread is often used to refer to the difference in bid and ask prices on an ...

Spread trading is a common tactic when dealing with options, and there are many spread strategies designed to pursue profit while mitigating risk. At the nexus of these strategies is the box spread. A ...

Leveraged trading with spread betting and contracts for difference (CFDs) isn’t for everyone. It certainly won’t form the core of a strategy for most MoneyWeek readers. However, for some people, short ...

Let’s start by stating the obvious. Commodities exist in the physical world. That means they are very different from stocks, bonds or cryptocurrencies. Those asset classes can move around the world ...

Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike. Traders can use calls or puts and they can be set up to be neutral, ...

Commodity futures offer direct exposure to global supply-and-demand forces, but outright futures positions can be volatile and difficult to manage—especially during weather events, geopolitical shocks ...