Debit Spread
Definition
An options trade requiring net payment of premium (debit) where the bought option costs more than the sold option.
Example
Bull call debit spread for moderately bullish outlook. Open Interest Category: Options Definition: The total number of outstanding option contracts that have not been settled or closed. Indicates liquidity and market in
Frequently Asked Question
What is Debit Spread in trading?
An options trade requiring net payment of premium (debit) where the bought option costs more than the sold option.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.