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Question regarding options

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Hi,

I have had a read of the below article on options:

https://www.ig.com/uk/glossary-trading-terms/option-spread-definition

It states "sell a call with a strike of 150 for a £2.50 premium (which you receive)."

When I enter my stake in the order window my margin (minimum of £407.57 for a stake of £1, a little too much to place a test trade), which I assume is my risk, is calculated but I don't see anything about the premium due for selling the option. Is the article an accurate reflection of how the IG options work or is it more general? Can anybody point me to some documentation explaining how short calls are actually managed by the platform?

Thanks

Screenshot_2020-05-21_20-24-17.png

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Whatever sell call price I selected and enter stake the margin requirement is the same. Is that not odd?

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12 hours ago, ZR_ said:

Hi,

I have had a read of the below article on options:

https://www.ig.com/uk/glossary-trading-terms/option-spread-definition

It states "sell a call with a strike of 150 for a £2.50 premium (which you receive)."

When I enter my stake in the order window my margin (minimum of £407.57 for a stake of £1, a little too much to place a test trade), which I assume is my risk, is calculated but I don't see anything about the premium due for selling the option. Is the article an accurate reflection of how the IG options work or is it more general? Can anybody point me to some documentation explaining how short calls are actually managed by the platform?

Thanks

Screenshot_2020-05-21_20-24-17.png

This forum may help: 

 

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Great thanksGreat thanks.

1 minute ago, CharlotteIG said:

This forum may help: 

Great, thanks!

 

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