ratio spread

Definition of "ratio spread"
  1. A method of option trading where more options are bought or sold at one strike price than another, typically designed to be delta neutral
How to use "ratio spread" in a sentence
  1. The investor utilized a ratio spread strategy to balance his investments.
  2. Due to market volatility, he decided to go for a ratio spread option to manage risk.
  3. The financial advisor suggested a ratio spread as an effective method for their investment portfolio.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z