An open position is any position that has been opened but has not been closed. It could be a long stock position, a short stock position, a long option position, a short option position, a long futures position, etc.
The word "spread" without qualifiers is usually used to indicated two or more open positions that offset each other. For example, a long stock position and a short call option combination, called a covered call, is a spread.
There are other uses of the word spread, for example a bid-ask spread, as noted in the first answer, is the difference between the bid price and the ask price for a particular security.
2007-09-17 17:27:56
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answer #1
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answered by zman492 7
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When you buy a stock option, you open the position, and you sell to close it. The spread is the difference between the bid and the ask price of the option.
2007-09-17 15:59:58
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answer #2
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answered by Anonymous
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