Spread

In finance, the spread can be defined as the difference between any two prices. It is also defined as the difference between the current bid and current ask prices for a given security (bid-ask spread). In the context of options, it is the buying and selling of an equal number options of the same asset class, on the same underlying security but with different strike prices or expiration dates (option spread). In bond trading, it is the difference between yields on bonds with similar quality but different maturities, or of different quality but with the same maturity. In underwriting, it is the difference between what the issuer receives from the underwriter and what the underwriter receives from the public.