Options Glossary

Glossary: Downside Protection

Last Updated: August 30, 2022

Glossary

Downside Protection

What Does Downside Protection Mean in Options Trading?

Tags: beginner, risk

The percent move down that the underlying can make until the trade begins to show a loss at expiration. The nearest expiration is used for the basis of calculation for time spreads.

Synonyms:
Down Protection

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