Net Price

Complex orders are quoted in net price terms combining the cost of obtaining each leg of a complex order in its proper ratio. For example, assume a customer wanted to buy five contracts of Option 1 at a price of $2.00 each and sell 15 contracts of option 2 at a price of $0.50 each. The ratio for this order is 1:3 and the customer’s limit price would be a net debit price of $0.50 - that is, a debit of $2.00 x 1 = $2.00 for option 1 and a credit of ($0.50) x 3 = ($1.50) for option 2, which would result in a net debit price of $0.50. Note: For details on the Net price of a Complex order with a stock leg, please see Complex Orders with Stock Legs.