flattener (plural flatteners)

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

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