Is there any MTM associated with spreads?

[ShubhS9]

@Avi_Garg

If a debit spread is created for example, MTM won’t deducted for the loss in short option side.

It will be.

@Avi_Garg

Penalty won’t be charged on the loss resulting from the short option side.

There won’t be any penalty. Do check out this response: MTM Margin calculations in options spreads - #11 by Sam