Margin requirement of bought sp500 option

[hlaci]

Hello,

I try to buy a sp500 call option, traded at 0.71 GBP per point. The trading platform cannot execute the trade, it says that the margin requirement is 152 GBP !

I have only 107 GBP on my spread betting account. I cannot understand this big margin requirement for buying an option, it should only be 0.71 GBP for buying 1 point.

Coulld anyone help me?

Thanks,

Laszlo

[trade247]

well whats the premium ?

also minimum size is £1/pt

 

[hlaci]

The deal ticket: US500 3400 CALL (MAR 20)

Size: 1    Currency: GBP    Sell price: 0.38  Buy price: 0.98

Margin required:  152.12/0.98

I have 107 GBP on my account. When I press the BUY, the system warns that I do not have enough funds on my account, I have to deposit more. WHY? I costs 0.98 GBP only to BUY that option.

Could anyone help me?

 

[trade247]

errr yes you're right.

Do you have any working orders or open positions taking up margin?

On the plus side it's now 0.89 to open so you've saved yourself 10%

[hlaci]

I do not have any open positions or working orders.

 

[Kodiak]

22 minutes ago, hlaci said:

The deal ticket: US500 3400 CALL (MAR 20)

Size: 1    Currency: GBP    Sell price: 0.38  Buy price: 0.98

Margin required:  152.12/0.98

I have 107 GBP on my account. When I press the BUY, the system warns that I do not have enough funds on my account, I have to deposit more. WHY? I costs 0.98 GBP only to BUY that option.

Could anyone help me?

 

Should be 0.98 for buy a call and 152 to sell short a call? 

"Margin required:  152.12/0.98"

Strange

If size is 1 GBP per point 

Edited February 27, 2020 by Kodiak

[hlaci]

Yes, it should be 0.98 GBP for buy.

But the trading system requires 152 GBP margin for buy. WHY?

[Guest Gilles]

Is there a multiplier on the option? It's usually minimum 100 options per contract.