What is a debit spread in option trading
« Back to the Options Trading Glossary What is Debit Spread in Options Trading ? Debit Spread An options trading spread in which money goes out of the account to execute the trade. In this strategy the premium paid in purchased options is more than the premium received in written options. Debit spreads are one of the two main types of options spreads that are classified based on the capital outlay: the other one being credit spreads. Unlike credit spreads, where you receive cash into your account at the point of creating them, creating debit spreads carries an upfront cost.