Trading options on margin left


Trading options on margin left


Margin requirements vary by option type. Brokers require investors to optuons 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. marginn The BasicsBuying on margin is borrowing money from a broker to purchase stock. You can think of it as a loan from your brokerage. To trade on margin, you need a margin account.

This is different from a regular cash account, in which you trade using the money in the account. By law, your broker is required to obtain your signature to open a margin account. Tading brokerage lends money at a given interest rate, allowing the margin account owner to invest more money than they initially had in their account. The more collateral an account has, the more money a brokerage will lend to an account. We can think about this like taking a loan out against a house.




Margin options on trading left

Trading options on margin left


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