Using margin to trade options introduces layers of risk beyond standard cash trading:
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. buying options on margin
Leverage can amplify gains, but it can also cause you to lose more than your initial investment if the market moves against you. Using margin to trade options introduces layers of
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%. You may be allowed to borrow up to
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