Exceptions to Margin Requirement

While this is the way that the margins are calculated for all options there is one case in which this margin requirement is not applied.

If you only hold bought options and you have no Forex spot positions in the same currency-crosses, the options are considered as a cash settle instrument. This means that their premiums are subtracted from the "Available for Margin Trading" amount (listed in the Account Summary), while no margin is required to hold the option positions. However, if you sell an option the margin requirement will then apply for all of the previously-bought options. Similarly, if you begin to trade in the same Forex spot cross as one of the bought options, the bought options in this cross cease to be considered as cash settle instruments and the previously mentioned margin requirements come into play.