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Spread trading

A couplet of trades that an investor makes is a better way to describe a spread trade. One of which involves buying a certain future or option, and the other involves simultaneously selling the second future or option. The two securities that make up the spread trade—often referred to as “legs”—provide the shift in price that an investor needs to make a profit.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

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