Option margin: In an options transaction, the buyer pays a premium to the seller, and the buyer obtains the right but is not obligated, so the buyer does not need to pay a margin other than the premium. For the seller, the buyer's premium is obtained, only the obligation has no right, therefore, the deposit is required to ensure that the buyer executes the option, the performance of the option contract, the following science is what is the meaning of option margin call?
1. Option margin call refers to the margin that investors need to pay when there are still open positions at the end of the day
The payment method of option margin can be cash or other forms such as **. To put it simply, the role of option margin is to prevent investors from losing more than the amount of margin they have paid in options trading, and if the investor cannot fulfill the obligations of their options contract, then they will lose the margin they paid.
However, if the investor is able to successfully fulfill his obligations in the options transaction, he will receive the margin paid and all the profits he makes.
2. **Options are margin trading
Take rebar ** as an example, now **3742, one lot is 10 tons, and the margin ratio is 1396
The value of the pendulum steel** is: 3742x10=37420
The margin required to buy a lot of rebar is 37420x13%=48466 yuan If the customer only has a total of 5000 funds, he bought a lot of rebar 48466 yuan, that takes up 48466 yuan, there is 153 left4 yuan green veins fluctuate 20 points in an unfavorable direction, 200 yuan.
If you lose 200, you will have 153 of the available funds4-200=-46.6 yuan: This person owes the exchange 466 yuan of funds, you need to add margin to the available funds is a positive number, if you do not add, you need to liquidate the position and release the margin.
How to avoid margin calls: light positions, reserve enough funds, generally at least a price limit for Xia Gai, options come with leverage, and light trading is better.
3. What is the meaning of option margin call?
First, let's take a look at the basic concept of options margin call. In options trading, margin is the money used to secure the performance of an option contract. Specifically, when an investor** or sells an option, it is required to pay a certain percentage of margin in accordance with the rules of the exchange. The purpose of margin is to prevent default of option contracts, so as to maintain market stability and protect the interests of investors.
However, in the course of options trading, investors may face the risk of insufficient margin due to changes in the market** or fluctuations in the value of options contracts. In this case, the broker may require the investor to pay an additional part of the funds on top of the original *** fund to maintain the margin adequacy ratio of the account. This is known as a margin call.
The purpose of options margin call is to help investors better cope with market risks and avoid being forced to close their positions or face greater losses due to insufficient margin. When the market moves against investors, a margin call can increase their tolerance and give them more opportunities to wait for the market or reverse.
It is important to note that an option margin call does not necessarily mean that the investor has incurred a loss. In options trading, profit and loss are determined depending on the execution of the option contract and changes in the market. Therefore, even if an investor needs a margin call, it does not mean that his investment has failed. Conversely, a margin call may be made to better capitalize on future market opportunities.
In short, option margin call means that due to market changes or fluctuations in the value of option contracts, investors need to pay an additional part of the funds on top of the original margin to maintain the margin adequacy ratio of the account.
The purpose of options margin call is to help investors better cope with market risks and avoid being forced to close their positions or face greater losses due to insufficient margin. In options trading, investors should pay close attention to changes in the market** and the margin status of the account in order to take timely countermeasures.
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