Margin Trading

Margin for options seller. The option seller, on the other hand, has a potential for unlimited loss. Thus the seller has to deposit margin with the exchange as a security in case of huge loss due to adverse price movement in the option price.

Margin trading - the foundation. This risk can arise if the holder has done any of the following:. Move it to your exchange wallet, you can't exchange on the trading tab.

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Margin trading with stocks is much different than margin trading with options, but lets have a quick look at what margin is and how it works. Trading on margin is when you borrow money from your broker to place a trade.

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