Ratio Spread

This Issue in United States

Concept of Ratio Spread in Futures Trading

In this context of financial law, the following is a definition of Ratio Spread: This strategy, which applies to both puts and calls, involves buying or selling options at one strike price in greater number than those bought or sold at another strike price. Ratio spreads are typically designed to be delta neutral. Back spreads and front spreads are types of ratio spreads.