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Buying call options


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Hi guys can someone help me understand why i need so much margin to buy a call option? i was under the impression that the most you can loose when buying a call option is the price of the option its self.  So why do i need a 5k margin to buy a out of the money call option at 250 quid?

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  • 2 weeks later...

probably because they are not real options, but a derivative bet on the option payoffs. An option position which would require margin. Real call options only risk your premium, but you need to go to a provider that sells them like Saxo - and the premium and minimum size may be higher.

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