flattener
nounEtymology From flatten + -er.
1
Anything that flattens.
2
Business, Finance A trade whose terms are based on the assumption that the rate of return will decrease.
- 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.2012, Howard Corb, Interest Rate Swaps and Other Derivatives, page 451:
- For example, if a trader thought that 2's 10's would trade lower than 185, he or she would put on a flattener.2014, Greg Gliner, Global Macro Trading: Profiting in a New World Economy: