bear spread

Definition of "bear spread"
  1. A trading strategy that aims to profit from a decline in prices by purchasing and selling options with the same class and expiration but different strike prices, or by purchasing and selling two futures contracts on the same or related commodities with different delivery dates
How to use "bear spread" in a sentence
  1. When the market was predicted to fall, the trader executed a bear spread to limit potential losses.
  2. The investor used a bear spread strategy to profit from the declining prices of grain futures.
  3. The commodity trader utilized a bear spread, selling a nearby delivery and buying a deferred one.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z