Backspread
Definition
A ratio spread where more options are purchased than sold, creating unlimited profit potential with limited risk.
Example
A call backspread profits from large upward moves.
Related Terms
Frequently Asked Question
What is a Backspread in options?
A Backspread is a ratio spread that buys more options than it sells — the opposite of a standard ratio spread. It creates unlimited profit potential with limited (and sometimes zero) risk, ideal when expecting a large directional move.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.