I am still studying these spread and im super confused about these things after watching your videos. someone please help me asap. So i noticed that the underlying most of the time is not close to the spreads bid and ask .
When i trade a spread am i depending on the underlyings price or the spreads price at expiration ? next question
This break even price you talk about in your videos, are you talking about break even on the amount of money im risking aka my risk or are you talking about a price i need to hit to cover some sort of loss before i start to profit. this is the most confusing part . if i buy a spread and it goes up i expect to be profiting right away every tick it goes up. however you make it seem as if i do buy the spread, due to something i need the spread to cover some gap before i start profiting.
I dont understand what this break even price you talk about it. can you please explain in more detail and try to make it simple . someone ? please ?