Trade with confidence with Xetra Options With an intuitive interface and lightning fast execution, Xetra Options is the industry-preferred trading solution for new and experienced traders alike. Options Spreads  Options spreads are the main building blocks of many options trading strategies and a spread position is entered by buying and selling equal number of choices of the same class on the same underlying security but with different strike prices or expiration dates. The three important classes of spreads are the horizontal spread, the vertical spread and the diagonal spread and they are grouped by the relationships between the strike price and expiration dates of the options involved.Vertical spreads or money spreads are spreads which involves options of the same underlying security and same expiration month but at distinct strike prices.Horizontal, calendar spreads or time spreads are created using choices of the same underlying security and same strike prices but with different expiration dates. Diagonal spreads are constructed using choices of the same underlying security but different strike prices and expiration dates and they are called diagonal spreads because they are a merge of vertical and horizontal spreads. Any spread that is constructed using calls can be referred to as a call spread while a put spread is build using put options and if a spread is designed to profit from anincrease in the rates of the underlying security, it is a bull spread. A bear spread is a spread where favourable outcome is acquired when the price of the underlying security goes down.If the premiums of the options sold is higher than the premiums of the choices purchased, then a net credit is received when entering the spread and if the opposite is true, then a debit is taken. Spreads which are entered on a debit are known as debit spreads while those entered on a credit are known as credit spreads and there are also spreads in which unequal number of options are simultaneously purchased and written.

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