Credit Spread

Spread that collects net premium

What is Credit Spread?

Credit Spread A spread where you receive more premium than you pay. You collect credit upfront and profit if the spread expires worthless or decreases in value.

Complete Definition

A spread where you receive more premium than you pay. You collect credit upfront and profit if the spread expires worthless or decreases in value.

Related Terms

Debit Spread Bull Put Spread Bear Call Spread

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