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Net Debit

The net premium paid to establish a multi-leg strategy — premium paid on the bought leg minus premium received on the sold leg.

Net debit is the net premium paid to establish a multi-leg strategy: premium paid on the bought leg minus premium received on the sold leg. For strategies like a Bull Call Spread or Bear Put Spread, the net debit represents the maximum possible loss on the position.

See net debit calculated in full worked examples in Bull Call Spread and Bear Put Spread Explained.