High volatility can increase the price difference between the two legs, affecting profitability. Low volatility benefits certain strategies like calendar spreads and butterfly spreads.

A regular order involves buying or selling a single security, while a spread order involves buying one security and selling another simultaneously to benefit from price differences or hedge risk.

Spread orders generally have lower risk than directional trades, but they are not risk-free. Risks include: Execution risk (one leg of the trade may not execute at the expected price).…