Options Glossary

Glossary: Natural-Mid Spread

Last Updated: February 19, 2018

Glossary

Natural-Mid Spread

What Does Natural-Mid Spread Mean in Options Trading?

The Natural-Mid Spread for an options contract or spread is the difference in percentage terms between the natural price and the mid-price. The difference between the natural indicates the liquidity of the trade. The smaller the difference between the two prices the more liquid or "tight" the option or spread trades.

How to Use In the Brutus Options Ranker

This criterion can be added to any Brutus Options Ranker Strategy. The options trader should always look to minimize this criterion as a measure of the potential position's liquidity.

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