Bear Vertical Spread Definiton

The strategy used when an investor expects a fall in prices for a single commodity, but at the same time seeks to limit potential losses if this expectation is erroneous. This spread requires the simultaneous purchase and sale of options of the same kind and expiration date, but with different starting prices.


Related words

Base CurrencyBalance of PaymentsBar ChartBig FigureBretton Woods AgreementBack officeBondsBrokerBID / ASKBalanced FundBalanced investment strategyBackpricingBackwardationBear SpreadBear Vertical SpreadBozuBreakaway gap