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Spread
The difference between the current bid and the current ask (in over-the-counter trading) or offered (in exchange trading) of a given security; also called 'bid/ask spread'. More generally, the difference between any two prices. Also, the purchase of one option and the simultaneous sale of a related option, such as two options of the same class having different strike prices and/or expiry dates. See 'Inside Spread'.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Private equity
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