Options for Futures

[shooly76 10]

is there a margin requirement for futures options?

 

or is it just the amount that one puts up for cost premium of calls and puts?

 

please list any good recourses as well..Im interested in simply speculating...buying and selling calls and puts..and selling and buying..

[SIUYA 11]

I would imagine it depends on the broker and instrument weather or not the options are exchange listed or OTC - some may give offsets

 

Options Education | Strategy Papers & Trading Tools - CME Group

[Trader1 10]

I think it depends what you want to do, if you have a cash or margin acount,

with a cash acount you normaly can only trade long calls and long puts,

but thats enough for most traders, if you want to do more advance strategies you would need a margin acount, every broker are different in this regard, you need to check with your broker

[CPassero 10]

is there a margin requirement for futures options?

 

or is it just the amount that one puts up for cost premium of calls and puts?

 

please list any good recourses as well..Im interested in simply speculating...buying and selling calls and puts..and selling and buying..

 

There is a minimum margin requirement for option that are determined by the exchange. Clearing brokers can set the margin higher than the exchange margin requirements. If youa re interested in learning more and potentially opening an account please contact me. I work at Advantage Futures, a clearing firm, and would be happy to help whether or not you are interested in opening an account.

[OptionsRules 10]

Trading options on futures is a very high return on your investment, but you need high margins as well. If the position goes against you and you are naked you need at least 2-3 times the original initial margin that you have put up.

[hackertrading 10]

Options on Futures is treated the same way as Futures. All Futures are margined by the SPAN Margining method. This is a risk-based method, so in general it will be a lot more favorable than the Reg-T margin. But as a trader, you have to understand how it works and different brokers may have slightly different implementation guidelines.

 

Hari