A spreader:
A) is a type of hedger.
B) takes relatively high-risk positions.
C) is also known as a scalper.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

A spreader is someone who takes positions on two different securities at the same time, with the goal of profiting on the difference in price between them. They are not necessarily hedgers, and while there is some risk involved, it is not necessarily considered high-risk. Scalping is a different trading strategy altogether.

A Spreader