Flattener

Definitions

1. Anything that flattens.
2. A trade whose terms are based on the assumption that the rate of return will decrease.

Equivalents

Examples

“Provided that the curve doesn't ever flatten too much and the option remains out-of-the-money, then we will put⟳ on flatteners when the curve steepens and put⟳ on steepeners when the curve flattens.”

“For example, if a trader thought that 2's 10's would trade⟳ lower than 185, he or she would put⟳ on a flattener.”

CEFR level