Jump to content
  • 0

Margin requirement of bought sp500 option

Question

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

Share this post


Link to post

6 answers to this question

Recommended Posts

  • 0

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?

 

Share this post


Link to post
  • 0

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%

Share this post


Link to post
  • 0

I do not have any open positions or working orders.

 

Share this post


Link to post
  • 0
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 by Kodiak

Share this post


Link to post
  • 0

Yes, it should be 0.98 GBP for buy.

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

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×