Spruce Knowledge Base

A calm, step-by-step guide to defined-risk credit spreads — how they work, how to size them, and what Canadian retail accounts usually allow.

Not financial advice

Nothing here is a recommendation to buy, sell, or hold any security. Verify brokerage, tax, and account rules with your broker and qualified advisors (including the CRA where relevant).

How to walk this site

Read in order the first time. Each page builds on the last.

1. How to use this site
2. Glossary — skim now, return when a word is new
3. Options basics → Payoffs → Greeks → Weekly vs monthly
4. Defined-risk overview → PCS playbook → CCS playbook
5. Risk policy proposal
6. Canadian notes: IBKR · TFSA · Cash vs margin

Optional: Sources for the public references behind tagged claims.

What you will learn

• What a credit spread is, in plain language
• How much you can make and lose on put and call credit spreads
• A starter risk policy you can adapt
• Why many Canadians run multi-leg spreads in a margin / non-registered account first

This is a knowledge base, not a brokerage, signal service, or live trading system.