Series 7: 5.6.2. Margin Requirements

5.6.2. Margin Requirements

Investors must purchase options within a margin account. They are required to deposit at least $2,000 in cash or securities prior to engaging in any options trading activity. Additional margin will be required to be deposited, depending on the type of options transaction.

With all calls and puts, the premiums cannot be bought on margin but must be paid in full.

Purchasers of calls and puts are not required to pay a margin deposit on the underlying stock because they will only exercise the option if they can profit fro