Option Margin

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Dictionary Says

Definition of 'Option Margin'

The cash or securities an investor must deposit in his account as collateral before writing options. Margin requirements vary by option type. Margin requirements are established by the Federal Reserve Board in Regulation T; individual brokers may impose additional requirements. Brokers require investors to deposit margin funds because they may be needed to buy or sell underlying stocks if the options are exercised. They may also be needed to close losing positions.
Investopedia Says

Investopedia explains 'Option Margin'

Margin requirements for options trading are different from margin requirements for trading stocks or futures. Also, some options trading strategies have no margin requirement. This is because the underlying stock can be used as collateral. Neither covered calls nor covered puts have a margin requirement, for example.

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'Option Margin'

  • The Advantages Of SPAN Margin

    http://www.investopedia.com/articles/optioninvestor/02/091802.asp
    ... Let's look at the general idea behind margin and what SPAN futures and option margin
    are. ... One additional point about option margin is that it is not fixed. ...

  • Spreading The Word About Portfolio Margin

    http://www.investopedia.com/articles/optioninvestor/09/portfolio-margin.asp
    ... A bull put spread is created by selling a put option and buying another put on ... the
    two put positions determines the amount of credit and the margin to withhold ...

  • Option Spreads: Tips And Things To Consider | Investopedia

    http://www.investopedia.com/university/optionspreadstrategies/optionspreads7.asp
    ... SPAN margin offers the advantage of having the nearby short option in a diagonal
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  • How Does Your Margin Grow?

    http://www.investopedia.com/articles/optioninvestor/04/120904.asp
    ... buyer paid. Since the option still has time to expiration, you are liable
    for the option. That is where margin comes in. (Stocks ...

  • Series 7 Study Guide - Customer Accounts - Purchasing Additional ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/purchase-shares-margin.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...

  • Series 7 Study Guide - Customer Accounts - Managing Margin ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/managing-margin-account.asp
    ... 9) months require cash payment of 75% of the option's market value. ... Spreads and other
    strategic combinations have distinct margin requirements based on their ...

  • Series 7 Study Guide - Customer Accounts - Margin Accounts ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/margin-account.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...

  • Series 7 Study Guide - Derivatives - Straddle Option Strategies ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/straddle-option-strategy.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...

  • Series 7 Study Guide - Customer Accounts - Stock Price Changes and ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/stock-price-change-margin.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...

  • Series 7 Study Guide - Customer Accounts - Margin Account ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/hypothecation-margin-value.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    10.7 Important Account Rules; 10.8 Closing Accounts; 10.9 Margin Accounts; 10.10 ...

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