Custom Spreads
A multi-leg spread is a trading strategy that involves taking a position in more than two related financial instruments at the same time, with the aim of profiting from the difference in price, or "spread," between them. This type of spread trading typically involves more complex trades and a greater degree of risk than a single-leg spread.
Multi-leg spreads can be created using a variety of financial instruments, such as options, futures, and currencies. There are different types of multi-leg spreads, each with their own unique characteristics and risk profiles.
One example of a multi-leg spread is a "butterfly spread," which is created by buying and selling two options at different strike prices, while also selling an option at an intermediate strike price. The goal is to profit from a specific price range for the underlying asset.
Another example is a "calendar spread", which is created by buying and selling options or futures contracts with different expiration dates. The goal is to profit from the time decay of the options or the change in the price of the underlying asset.
It is important to note that multi-leg spreads can be complex and carry a higher degree of risk than single-leg spreads. Therefore, it is crucial to have a good understanding of the markets, instruments, and strategies involved before engaging in this type of trading.
Spread Trader enables the flexibility of creating cross-exchange spreads with an unlimited number of legs and advanced configuration parameters.