Price Exceeds Strike-Difference Error

The price exceeds strike-difference error protects you from overpaying when you manually close a spread position.

Kirk Du Plessis

The price exceeds strike-difference error occurs when you attempt to close a credit spread position with a price that is greater than the spread’s width.

For example, this “Demo Live Bot” has a $1 wide call spread. The position cost $0.29 to enter.

Position details

If you enter a $1.05 limit order, which is more than the spread’s width of $1.00, you will receive an error message.

SmartPricing settings

The close position order is rejected by the broker because credit spreads cannot exceed the strike difference.

Price Exceeds Strike-Difference Error

The position remains active in the account after the error is received.

This failsafe is in place to protect you from overpaying and taking a larger loss than necessary on a spread position.

SmartPricing avoids this issue. This error will only occur if SmarPricing is turned off and you try to manually close a position for a price larger than the spread’s width.

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