Buying Options On: Margin

If the value of your account equity falls below the Maintenance Margin , your broker will issue a margin call, requiring you to deposit more cash or liquidate positions immediately.

Options with 9 months or less until expiration cannot be purchased on margin. You must pay 100% of the premium upfront. buying options on margin

Collateral to ensure you can fulfill the obligation if assigned. If the value of your account equity falls

Advanced traders with high account balances (typically over $125k) may qualify for Portfolio Margin , a risk-based system that can significantly lower margin requirements for hedged positions. Margin Buying Power - Firstrade Securities Collateral to ensure you can fulfill the obligation

Options with more than 9 months to expiration are often marginable. You may be allowed to borrow up to 25% of the cost, meaning you must put up an initial margin of 75%.