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Why do you need margin for bought options?


hkoptions

Question

I trade only bought options and I don't sell options. So why is that margin money is shown in my account?

My account shows margin blocked details of which are produced. 

 

Margin$620.00

Margin (guaranteed stops)$620.00

Margin (non-guaranteed stops)$0.00

Equity used2.83%

Can you please explain what is margin with guarantee stops and non-guarantee stops

Why should there be a margin applied for outright purchase of a put or call option?

Thank you.

 

 

 


 

 
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