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Debit spread

• Is an option position whereby the end result is a debit. For example, the investor who places a vertical bull call spread pays a net premium or is debited. Similarly, a risk manager who places a vertical bear put spread is charged a net premium or is debited.

 
 

Follow this link for all the terms related to spread.

 
 Embedded terms in definition
 Bear
Bull
Call
Investor
Net
Option
Position
Premium
Put
Risk
Spread
 
 Related Terms
 

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