Spread is the gap between the bid price (price offered) and the ask price (price requested) of a stock, currency or other security. When asked for a quote, our dealer will give you these two prices. The difference between them is the spread. It can also be:

• The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. Also known as a straddle.
• The difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public.
• The price an issuer pays above a benchmark fixed-income yield to borrow money.

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