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!
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!