List of Financial Market Terms

A Calendar Spread, also known as interdelivery, intermarket, time, or horizontal spread, is used in both Options Trading and Futures Trading.  To accomplish this spread, a Trader enters into a long and short position on the same underlying asset (crude futures, AAPL options, etc), but with different expirations, or deliver months. 

For example: A Trader could go long front month Natural Gas Futures while at the same time going short Natural Gas Futures that are 3 months out.

Related terms: What is an option?, Put, Call

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