Key Concepts

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.


Margin is the amount of capital required to open a trade. Brokers and clearing firms use margin to make sure that there is enough money in an account to cover potential losses. Portfolio margin (PM) is a tool that allows brokerage firms to let traders to take on more leverage than in a standard margin account. PM reflects the actual risk of an account, rather than a fixed percentage. It is how market makers and professional traders have been margined for decades and is similar to the margin on futures and futures options.

Margin Videos