For Debit Spread we have terms and definitions in 3 topics. The topics are Finance, Financial and Securities.

Debit Spread (Finance)

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 (Financial)

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. 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.

Debit Spread (Securities)

An options spread position in which the premium paid on the long position is greater than the premium received on the short position.

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