Forex forum Forexforum.net Forex news Forex forum
Forex tutorial Forex brokers Contact us
  Sunday th 19th




Ratio CALL spread



A compound option strategy that consists of a number of long calls with lower strike prices and a larger number of short calls with a higher strike price. The maximum profit is realized when the currency price is at the higher strike price. This combination has two break-even points. The downside break-even point consists of the sum of the lower strike price and the debit, divided by the number of long calls. The upside break-even point consists of the sum of the higher strike price and the maximum profit potential, divided by the number of naked calls. The maximum loss is twofold. The maximum downside risk is the net premium. The upside risk is unlimited.



Search by letter :

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




Forex news - Forex calendar - Forex forum - Forex tutorial - Forex glossary - Forex brokers - Forex books - Forex links