Options Margin Requirements

Options Margin Overview

Australia Options Margin Requirements


For residents of Australia trading options:

  • Risk-based margin

The complete margin requirement details are listed in the sections below.





Risk Margin Overview


What is risk based margining?

A risk based margin system evaluates your portfolio to set your margin requirements. The risk valuations of your positions are created using simulated market movements that anticipate possible outcomes. As a result, a more accurate margin model is created, allowing the investor to increase their leverage.


How are correlated risks offset?

Within a group of positions with the same underlying, 100% of the gain at any one valuation point is allowed to offset another positions loss at the same valuation point.

Example: An account holds a long stock position in stock ABC and a long put option contract in ABC. If a theoretical worst case scenario causes the underlying asset to drop 15%, then the loss that on the long stock position would be offset by the gain on the long put position.


What are my eligibility requirements?

Eligibility requirements vary according to the investor's personal information, region, and exchange.


What positions are eligible?

All positions in margin equity securities (including foreign equity securities and options on foreign equity securities, listed options on an equity security or index of equity securities, security futures products, unlisted derivatives on an equity security or index of equity securities, warrants on an equity security or index of equity securities, broad-based index futures, and options on broad-based index futures.




Additional Australia Margin Requirements

For Residents of Australia:

Use the following links to view other margin requirements:

Stocks

Futures & FOPs

CFDs


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Further Reading


To learn more about trading on margin, go to our Education Center:

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Disclosures







Pursuant to Part 7.8A of the Corporations Act 2001, Interactive Brokers Australia Pty. Ltd. has prepared the following target market determinations relating to certain financial products for which it is deemed to be the issuer. Our Target Market Determinations are located here: Target Market Determinations.

Product Disclosure Statements are also available for each of these products. If applicable, you should carefully consider these Disclosures in deciding whether to acquire, or to continue to hold, the relevant financial product.