Options margins

Want to find out more about how margins are calculated? In this video we introduce you to how the daily margin value is calculated. We start by explaining when you may be eligible for margins, how to cover your margins and introduce you to the SPAN margining methodology.

Managing the margins on your options contracts form an important part of an advanced trader's toolkit. Implied Volatility offers many tools to help our clients manage their margins across complicated portfolios.

Whenever you sell strategies that generate premium for you (i.e. credit trade) you will incur a margin to cover the risk of the trade going against you.

In this video, we explain how this margin is calculated and what you can do to reduce it.

After watching this video, you should have a basic understanding of how margins impact your account and when they apply to your account.

Video Contents

• What are options margins?
• When are options margins applicable?
• Using existing stock to cover margin obligations
• The CME SPAN Margining Methodology
• Handy tools in Implied Volatility to better understand margin