Debit Spread

Spread that pays net premium

What is Debit Spread?

Debit Spread A spread where you pay more premium than you receive. Requires the underlying to move in your direction to profit. Lower cost than naked options.

Complete Definition

A spread where you pay more premium than you receive. Requires the underlying to move in your direction to profit. Lower cost than naked options.

Related Terms

Credit Spread Bull Call Spread Bear Put Spread

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