# Curve Trade

Source: https://www.yieldcurve.pro/learn/curve-trade

A **curve trade** is a multi-legged position that expresses a view on the shape of the yield curve — its slope, curvature, or the relative value between specific maturities — while hedging out exposure to parallel rate movements.

Common curve trade types:

- **Steepener**: profits when the curve steepens (long the short end, short the long end). A trader who expects Fed rate cuts would put on a steepener.
- **Flattener**: profits when the curve flattens (short the short end, long the long end). A trader who expects aggressive rate hikes would put on a flattener.
- **Butterfly**: profits from changes in curvature between three maturities.

All curve trades are constructed [duration-neutral](https://www.yieldcurve.pro/learn/duration-neutral): the DV01 of the long leg matches the DV01 of the short leg, so the trade has zero exposure to a parallel shift in rates. Profit comes only from the change in the targeted spread.

Curve trades are sized by their **DV01** per basis point of spread change. For example, a 2s/10s steepener with $100 DV01 per leg earns $100 for every basis point the 2s10s spread widens.

The [slopes tool](https://www.yieldcurve.pro/slopes) charts historical spreads, enabling traders to evaluate current spread levels against historical context. The blog series on yield curve regimes documents how curve trades perform across different market environments.