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Tagged: Margin
margin money is mandatory for both buyers and sellers in options
In option contract, there is no requirement for the buyer to deposit margin money. Only the premium is paid to the seller for his limited risk.
It is mandatory for the seller to deposit margin money as his risk is unlimited.
Option contract no margin money required . Buyer pays a premium to seller .
only buyer has to pay
Margin money is nothing but caution deposit in case of options buyer has to give premium to seller .
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