Two Questions

Discussion in 'Options' started by Arnie Guitar, Sep 12, 2023.

  1. Robert Morse

    Robert Morse Sponsor

    On the buy side, the debit Ballance of the trade can’t exceed your equity. For the credit spread, the value of worst case loss is the margin required for your equity. If a 5 point spread trades at $3.00, your debit spread will cost $3*100*number of spreads not including fees. On the sell side, you will need equity of $2*100*number of spreads plus fees.
     
    #11     Sep 13, 2023