The margin for options on futures is a performance bond deposit that earns interest because it is usually held in the form of short-term Treasury bills (T-bills). Specific Services currently include: CME CORE, PC-SPAN Software, CME CORE API. This is not the same as margining stock. The margin for stocks is actually a loan to you from your broker so that you can buy more stock with less available capital. Head Product Manager of CME Groups Post-trade Risk Management Services. Option margin refers to the money that a trader must deposit into a trading account in order to trade options. Many, but not all, of today's major derivatives exchanges, utilize SPAN.Options and futures writers are required to have a sufficient amount of margin in their accounts to cover potential losses. ![]() The main inputs to the models are strike prices, risk-free interest rates, changes in prices of the underlying securities, changes in volatility, and decreases in time to expiration.SPAN margins are calculated using risk arrays and modeled risk scenarios that are processed and analyzed by sophisticated algorithms.SPAN Margin determines margin requirements based on a global assessment of the one-day risk for a trader's account.
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