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Spread Order

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Spread order
An order listing the series of options that the customer wants to buy and sell and the desired spread between the premiums paid and received for the options.

Spread Order
An order to a broker to buy and sell different options on the same underlying asset but for different premiums and/or strike prices. The client who makes the spread order hopes to profit from the difference between the prices in the options sold and the options bought. See also: Spread strategy.

spread order
An order to buy and to sell options of the same class but with different strike prices and/or expiration dates in which the customer specifies a spread between the option sold and the option purchased. For example, an investor might enter a spread order to buy a March call and sell a September call, both on AOL Time Warner and with a strike price of $30, if a spread of $2 can be obtained. The order will be executed only if a floor broker can sell the September call for $2 more than the price at which the March call can be purchased.


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A spread order can be entered at the market or you can designate that you wish to be filled when the price difference between the commodities reaches a certain point (or premium).
With dynamic smart routing logic, Nocturnal will spread orders out over multiple destinations seeking executions at midpoint or better.
To enter this position, use a spread order to Buy to Open EMMS Jun 12.
 
 
 
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