Debit spread

Debit Spread
Debit Spread definition :
Applies to derivative products. Difference in the value of two options, when the value of the option bought exceeds the value of the one sold. One buys a "debit spread." Antithesis of a credit spread.

Debit Spread
Investment Dictionary:
Debit Spread
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Debit Spreads - Increase Your Flexibility
v Â- d Â- eDerivatives market
Derivative (finance) ...

DEBIT SPREAD - Is an option position whereby the end result is a debit. For example, the investor who p...
DEBT - An amount owed for funds borrowed. The debt may be owed to an organization's own reserves, indiv...

Debit Spread
An option spread in which the premium of the bought option is greater than the premium of the one sold.
See: Credit Spread; Option Premium; Option Spread ...

Debit spread - A position in which an option with a higher premium is bought and an option with a lower premium is sold, resulting in 'paying a debit' when making the trades.
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Debit spread
Applies to derivative products. Difference in the value of two options, when the value of the option bought exceeds the value of the one sold. One buys a "debit spread." Antithesis of a credit spread.
Debt
Money borrowed.

DEBIT SPREAD " An option spread position in which the premium of the purchased option is greater than the premium of the option sold.

Debit spread: An options spread position in which the premium paid on the long position is greater than the premium received on the short position.
Declared date: The date on which a corporation declares a dividend.

Debit Spread
Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time.

See: Debit Spread; Options; Option Premium; Option Spread; Spread
Crossed Market
A condition in which a broker submits a bid that is greater than the lowest offer of another broker, or vice versa.
See: Asked Price ...

debit spread A spread position where the price of the bought option is greater than the price of the sold option. debt An amount borrowed or owed between two parties. Debt comes with the implied...

The credit spread and its corresponding debit spread at the same strike prices will always have virtually identical returns on investment (ROI).

The spread may both be debit spreads (call bull spread vs. put bear spread) or both credit spreads (call bear spread vs. put bull spread). Break-Even Point--the stock price (or prices) at which a particular strategy neither makes nor loses money.

difference in the value of two options, when the value of the one sold exceeds the value of the one bought. The opposite of a debit spread .
Dictionary of Banking Terms
credit spread ...

Applies to derivative products. Difference in the value of two options, when the value of the one sold exceeds the value of the one bought. One sells a "credit spread." Antithesis of a debit spread Related: Quality spread.
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One spread is implemented using put options and the other is implemented with calls. The spreads may both be debit spreads (call bull spread vs. put bear spread) or both credit spreads (call bear spread vs. put bull spread).

" Antithesis of a debit spread Related: Quality spread. Credit union A not-for-profit institution that is operated as a cooperative and offers financial services such as low-interest loans, to its members.

Antithesis of a debit spread Related: Quality spread. Crediting rate The interest rate offered on an investment type insurance policy. Creditor Lender of money.

See also: Credit spread, Expense, Bills, Banks, Indenture