Sorry “newbie” question. Have traded options for years, but today was my first vertical credit spread. When does the “cash” get credited to your account on a credit spread?
Thats good your experimenting w verticals. You get the credit immediately when you open the spread. That cash shows up right away.
But the broker locks buying power equal to the max loss, so it doesn’t feel like usable money
You don’t actually realize profit until you close the spread cheaper or it expires worthless and the buying power is released.
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Upon order fill.
Thats good your experimenting w verticals. You get the credit immediately when you open the spread. That cash shows up right away.
But the broker locks buying power equal to the max loss, so it doesn’t feel like usable money
You don’t actually realize profit until you close the spread cheaper or it expires worthless and the buying power is released.