Whether Margin money is mandatory for both buyers & sellers of Option Contract

[SRINIVASAN S]

Margin refers to cash required to be deposited by an option writer with his brokerage firm as collateral for obligation to buy or sell.  It is required.

[Ravi]

Both buyer and seller need to pay the margin money.  As there is not physical settlement of commodity, both parties expected to pay the margin money based on agreed price and day to day price fluctuation.

[swaroopa]

Yes, both buyer and seller need to pay the margin money.

[M S Vengatesan]

No it is applicable only for sellers.

[Praspan Janagiraaman]

Yes.  It is mandatory for both buyers and sellers.

[Author]

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