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

[Abhishek Singhvi]

No, margin money is not mandatory for both buyer & sellers of option contract, but in general share brokers insist for margin money to enter into contract.

[Leelakrishna]

Yes, Because at the end of the every day Settlement will be happen(Profit or Loss Distribution on day to day basis).

[prabhaker]

No margin money. In options buyer has to pay premium to seller

[Jyothirmayee]

Margin money is not necessary but strike price is necessary to evaluate the contract

[R . Vinay Kumar]

Margin money is not required until the strike price is not reached.

If strike price is reached , the seller must have pay the margin to the buyer. Seller must have cash in his trade account in order for exchange to settle the difference amount.

Buyer pays premium to seller at the time of contract. He doesn’t need margin money.

[Author]

Posts