option margin(redirected from Option Margins)
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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
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.