A spread position is the simultaneous purchase and sale of two related futures or options on futures positions. Spread positions are undertaken when the prices of two futures or options on futures contracts are considered out-of-line with each other. In many ways futures and options spreads are analogous to arbitrage or quasi-arbitrage positions. Futures spreads can be divided into two broad categories: intramarket spreads and intermarket spreads.
A spread position is the simultaneous purchase and sale of two related futures or options on futures positions. Spread positions are undertaken when the prices of two futures or options on futures contracts are considered out-of-line with each other. In many ways futures and options spreads are analogous to arbitrage or quasi-arbitrage positions. Futures spreads can be divided into two broad categories: intramarket spreads and intermarket spreads.