Buying Options On Margin File

The term "margin" in options trading refers to two distinct scenarios: Requirement Purpose Buying (Long) Usually 100% of premium (except LEAPS). Payment for the contract. Selling (Short) Varies (Initial + Maintenance).

While you often can't use margin to buy the options, you can sometimes use the value of your options as collateral to increase your overall account's Buying Power . The "Two Sides" of Margin Requirements buying options on margin

Leverage can amplify gains, but it can also cause you to lose more than your initial investment if the market moves against you. The term "margin" in options trading refers to

Using margin to trade options introduces layers of risk beyond standard cash trading: buying options on margin