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Margins

When you write an option contract, you have a potential obligation to deliver the underlying shares if that option is exercised. As an option writer you may also have potentially unlimited risk if the market moves against your position. In order to ensure you can meet this obligation, ASX Clear requires all option writers to provide a margin.

Tip

You only need to provide a margin if you sell an option contract. Option buyers do not need to provide any margin for their open positions.

ASX Clear calculates the amount of security that it deems necessary to ensure that the option writer can meet their obligations under the option contract. As the option contract value is affected by the market price of the underlying stock, the value of any margin requirement will also change as the market price of the underlying stock changes.


  

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