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Butterfly trade

• Is the sale of two units of a futures contract and the purchase of two units of a futures contract. Here, the contracts are positioned across three different delivery months. One pattern would be buy 1 March, Sell 2 April, and Buy 1 May. This strategy is also used in the credit markets.

 
 

Follow this link for all the terms related to trade.

 
 Embedded terms in definition
 Buy
Contract
Credit
Delivery month
Delivery
Futures contract
Futures
Purchase
Sale
Sell
 
 Related Terms
 

<< Butterfly shift Buy >>

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