Is there any Margin payable in Options?

asked Tuesday, April 10, 2018

When you buy an Options contract, you don't need to pay a margin as your loss is limited. You need to pay a premium amount. Your loss will be limited to the value of premium.

When you sell an Options contract, you need to pay a margin requirement as there is a chance of unlimited loss and limited profit. So you need to maintain the margin amount as decided by the exchange.

answered Tuesday, April 10, 2018

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