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   Unmargined Spread
   















 

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Unmargined Spread

An option spread in which, for one or more of the following reasons, the short option is margined as a 'naked' option rather than as part of a spread: (1) The long option expires before the short option. (2) The price relationships in certain vertical or diagonal spreads may be such that the margin requirements for a naked option are more favorable than those for spread margin treatment. (3) One or both of the options are unlisted.

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