Ratio spreads
Ratio spread matrices - 1:2, 1:3, 2:5 and four-leg structures
Every ratio spread priced at every strike and every gap, for calls and puts, on both the side you establish it and the side you unwind it - recomputed on each tick.
- Built-in ratios
- 1:2 · 1:3 · 2:5 · 1:3:3:1
- Custom ratios
- Up to 3
- Gaps per matrix
- 40
| Strike | Gap 50 | Gap 100 | Gap 150 |
|---|---|---|---|
| 7,850 | -351.01 | -297.31 | -246.17 |
| 7,900 | -325.76 | -274.62 | -225.66 |
| 7,950 | -301.79 | -252.83 | -206.17 |
| 8,000 | -278.72 | -232.06 | -187.96 |
| 8,050 | -256.47 | -212.37 | -170.75 |
| 8,100 | -235.37 | -193.75 | -154.61 |
| 8,150 | -215.48 | -176.34 | -139.60 |
A matrix, not a calculator
Most tools price one spread at a time: you pick the legs, it returns a number, you change a strike and ask again. A matrix inverts that. Every strike runs down the side, every gap runs across the top, and each cell is that spread at that width - so the structure worth doing is something you see rather than something you hunt for.
Calls and puts get their own panel, and each cell carries two numbers: the rate to establish the spread and the rate to unwind it. They are not the same number, and the difference is the spread you are actually paying.
Priced from the book you can trade
Legs you buy are priced at the ask and legs you sell at the bid when establishing, and the mirror when unwinding. No midpoints - a mid-priced spread looks better than it is and cannot be executed.
Where a leg has no two-sided quote the cell is left empty rather than filled with an optimistic guess. Outside market hours, when the whole book is closed, the matrices say so instead of pricing off stale last trades.
Four legs, and your own ratios
Beyond 1:2, 1:3 and 2:5 there is a 1:3:3:1 four-leg structure - buy one, sell three, buy three, sell one, at equal gaps - the family that butterflies and condors come from. Signs alternate from the first leg, and each leg sits one gap further out.
You can also define up to three ratios of your own with two or three legs, and they become tabs beside the built-in ones. Layouts, filters and the instruments on your canvas are saved per user.
- Two instruments side by side, calls and puts, on one canvas
- Filters on gap, count, strike and a min/max on the rate
- Recomputed in your browser on every tick, not fetched per query
Questions
- What is a ratio spread?
- An option spread where the legs are not in equal quantity - buying one option and selling two or three further out, for example. The uneven quantity is what gives it its payoff shape and its risk.
- Can I price butterfly-style structures?
- Yes. The built-in 1:3:3:1 is a four-leg structure at equal gaps, and custom ratios let you define your own two- or three-leg combinations. Each is priced across every strike and gap at once.
- What is the difference between the buy and sell rate?
- The buy rate is what it costs to establish the spread - buy legs at the ask, sell legs at the bid. The sell rate is what you receive to unwind it, with the sides reversed. The gap between them is the cost of the round trip.
- Which instruments have ratio matrices?
- All fed chains, on MCX, NSE and BSE, with the gap sizes set per instrument - 50 on crude, 500 on gold, 1000 on silver, and so on.
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Market data and analytics are provided for information and research. They are not investment advice and not an offer to buy or sell any security or contract.