SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Option Trading Course Module 1

» Start this Course
(Practice similar questions for free)
Question:

What is the difference between an Option Spread and a Credit Spread?

Author: David J Perrot



Answer:

An options spread is a strategy that involves the simultaneous buying and selling of options on the same underlying asset. A credit spread involves selling a high-premium option while purchasing a low-premium option in the same class or of the same security, resulting in a credit to the trader's account.


0 / 5  (0 ratings)

1 answer(s) in total