# Vertical Spread

*Derivatives & Options — Finicade finance glossary*

A vertical spread buys one option and sells another of the same type and expiry at a different strike, capping both the cost and the payoff. A debit spread pays out if the move happens; a credit spread pays you upfront to bet it won't go too far. Verticals are the standard way to express a directional view cheaply, because the short leg funds much of the long leg — at the price of giving up everything beyond the second strike.

**Also known as:** debit spread, credit spread option, bull call spread, bear put spread

**Related terms:** [Option Strategies](https://finicade.com/glossary/option-strategies), [Iron Condor](https://finicade.com/glossary/iron-condor), [Calendar Spread](https://finicade.com/glossary/calendar-spread), [Strike Price](https://finicade.com/glossary/strike-price), [Option Premium](https://finicade.com/glossary/premium)

Source: https://finicade.com/glossary/vertical-spread