option margin

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Option margin

The margin requirement for options described in Regulation T and in brokers' individual policies.
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Option Margin

The initial margin or maintenance margin that an investor must deposit with a brokerage as collateral in order to purchase options with borrowed money. The option margin is set by Regulation T, but some brokerages have higher requirements.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

option margin

The margin requirement to open and maintain an option position. Federal Reserve Regulation T sets minimum option margins, although individual brokerage firms may establish more strict requirements.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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