Trader Resources : Options Markets Basics : Margining Options
Option holders need no margin account. The premium paid to obtain an option is the most an option holder can lose, and this premium is paid in full when the option is purchased. An exercised option, however, will then require margin deposits to cover unlimited risks associated with holding a futures position.

Option writers face risks similar to holders of futures contracts and must post margins like those of futures contracts. They face margin calls in adverse markets that erode their initial margin monies.

<< Prev | Resources Menu