Posts Tagged ‘Max Loss’
Calculating Profit Potential and Max Loss on an Options Trade.
The first thing to determine is whether the trade is a debit trade, where you pay money for the trade, or a credit trade, where you get money. Iron condors and credit spreads are two examples of credit spreads. Butterflies and Calendar Spreads are debit spreads. OptionsTrade Debit Spread With a debit spread, the max…Read More