Ok, i understand that if im doing an ITM spread to collect premium at expiry, if the market stays flat, go in my favor, ect i make money. Now lets say im doing an ITM spread and i dont hold it to expiry because its going against me, would my risk be from where i got into the spread to where i got out no matter what my P/L says.
Example: im buying an ITM spread (MAX RISK - $150) (MAX PROFIT - $37) now the market goes down and im losing money, my Profit/Loss says -$21. If i close this trade, will i lose the -$21 or will i only lose the difference from where i got in and now getting out no matter what the P/L says? Like i bought at 1.3280 and the market is trading at 1.3295, now im still in-the-money but my P/L says im down -$21, if i close do i lose the -$21 or will i only lose the distance from 1.3280 - 1.3295 which is 15pts/$15?