Jump to content
  • 0

Buying options - maximum risk


Guest Canberra

Question

Guest Canberra

Hi all

I'm new here and looking to buy some options as a hedge.

 

On this page http://www.ig.com/au/options-product-details

It says, at note 10,

"10. The margin requirement for buying a stock index option is the opening price (or premium) multiplied by the contract value (per point in the underlying market). This is the maximum possible loss on the position."

 

It appears that this note only applies to some markets. My understanding is that the margin is the maximum possible loss is true for ALL purchased options?

 

At the moment I'm planning on buying some December Puts on the ASX200 and some December calls on gold.

Thanks in advance

 

Link to comment

1 answer to this question

Recommended Posts

Hi there, thanks for your query.

 

You are right about the margin requirement on purchased options. The margin requirement will be the maximum possible loss on the trade and this applies for options on any underlying market, not just for index options.

 

If you have any further queries on this please let us know.

Link to comment

Archived

This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • Hi KoketsoIG, Thank you for the clarification on that. Cheers
    • Dear @millennium_falcon, Hey there! Thank you for reaching out. Just a heads-up, you can only have one API key for each environment, either live or demo. No third API key can be created.  Thanks, KoketsoIG
    • To clarify my understanding. From my Usecase, I have three separate programs all operating interdependently from one another. A program to subscribe to tic data on a number of Epics via the LightStream API, another to grab historic on a number of Epics via the REST API, and finally another to manage positions via the REST API. I need to do this on my demo account initially to get API code stabilized. The IG website specifically says that I need separate API key for each distinct program connecting to IG over REST or LightStream. So in my understanding it looks like I need three API keys all for the demo account. Am I missing something or have I misunderstood how to use these API keys? I am aware of the API request limits and this is why I assumed you need a key per program. Currently I have one API key for the demo account and cannot seem to add more keys to the demo account? I have looked at the FAQ and cannot see an answer for my query.
×
×
  • Create New...
us