Noob - Two leg trade question

Discussion in 'Options' started by countdrak, Jun 11, 2013.

  1. I am an Options noob and just learning. I have simple question and I tried googling and couldn't find anything on it.

    When I do a two leg trade - A straddle or a spread my Options house account gives me an Option for "Price Type"

    The options are Market, Net Debit, Net Credit and 0.00

    I understand I can buy everything at market and when I have a debit trade I should pay something and if I have credit trade I will receive some credit.

    What is confusing is that I can pick any of the Price Types, how is that possible? Why should I be allowed to pick a Net Debit if I have suppose to have a credit.

    Thanks!
     
  2. You can theoretically bid or offer any price you want for any spread, but that does not mean you will get a fill.