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TeachMeFinance.com historic definition... Back spread -- A term used in an arbitrage operation in a commodity (grain, cotton or coffee, etc.) and also in a stock when different prices prevail normally as well as from fluctuations for the same thing in different markets. The thing is bought in one market and simultaneously sold in another, to be subsequently sold where is was bought and simultaneously bought where it was sold. In grain there is normally a difference in price between two markets equal to the cost of transporting the grain from the market where the lower price prevails to the market where the higher price prevails. To permit a back spread the difference in price between the two markets must be less than the normal difference. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.