# Water Poks - Spread Options Water-based Poks are of a defensive nature, where users give up some profit potential in exchange for a lower cost of rearing. They are good to trade a range-bound market. You pay a full premium upfront, but this will be cheaper than PAYG options because your profit potential is limited. For Spread Options, you will need to choose the Duration, Strike Range, and Trade Size. The Strike Range refers to the maximum profit potential that the Spread Option will be capped at. A lower Strike Range (5%) will be cheaper than a higher Strike Range (10%) as you are giving up even more profit potential.

Other than capped profit potential, the key difference is that Spread Options are fully paid for upfront and Water-based Poks do not require daily feeds. The Order Summary here shows the maximum profit potential for a Spread Option with Strike Range of 5%.

Water-based Poks do not require additional feeds

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