intercommodity spread investment & finance definition
A situation in which a futures contract in one
commodities market is purchased and futures contracts are sold in a different,
but usually related, market. For example, an intercommodity spread would cause
crude oil futures to be purchased and heating oil futures to be sold. Also
called intermarket spread.
See intercommodity spread in Wall Street Words
An investment position in which an investor purchases one commodity and sells short a related but different commodity. An example of an intercommodity spread would be the purchase of a futures contract in silver and the sale of a contract in gold.