What is a Bull Spread

Welcome to OptionRally Academy, I'm Amy Anderson with the Term of the day. Today we are going to talk about Bull Spread. Bull Spread is high-risk option trading strategy wherein the investor profits only if the underlying financial instrument increases in value over the investment horizon. Either put or call may be used to execute the strategy. The Trader wants to buy lower strike price options and sell higher strike price options. This type of trade should only be used by an experienced forex trader. It's one of the higher risk trading methods that causes a lot of anticipation. You make a lot of money if the stock rises yet you lose it all if it does not. Thank you for joining me for the term of the day, join me for a new term every day. You can also follow me right here on my channel and on my Facebook page.