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Ratio Spread

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Description

An option strategy where the number of bought options differs from the number sold, aiming for a specific risk-reward profile.

A Ratio Spread is an options strategy where the number of options bought does not match the number sold, aiming to create a specific risk-reward profile. This can be used to leverage market views with limited risk, where the strategy might be net credit or debit, depending on if more options are sold or bought.

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