lamkjo

For those ‘in the know’ or with more experience of Options trading out there... If you buy a Call option (let’s say GBP/USD) and the price drops vs what you paid for it... so you’re ‘out of the money’. You’re account shows the theoretical amount you are down. ... in reality you wouldn’t exercise the option as it would be cheaper to buy on the market. However because the account reflects the ‘loss as per the market’ rather than just the commission... the ‘funds available’ on your account are being affected and thus funds that should be for use are being tied up. In reality the real loss is the commission paid for the contract (the call option is the right not obligation to buy the asset... so GBP/USD). Is this really how it works, what everyone else is also experiencing or am i missing something here? Thanks.