# Spread Option

*Derivatives & Options — Finicade finance glossary*

An option on the difference between two prices — the gap between crude and refined oil, or two interest rates. It isolates a relationship rather than an outright level, and its price hinges on their correlation.

**Related terms:** [Correlation](https://finicade.com/glossary/correlation), [Exotic Option](https://finicade.com/glossary/exotic-options), [Basis Risk](https://finicade.com/glossary/basis-risk)

Source: https://finicade.com/glossary/spread-option