Do Options Buyers Face Margin Calls?
Generally, options buyers do not face margin calls because their maximum potential loss is limited to the premium they paid upfront. Since they have already paid for the full extent of their risk, there is no need for a margin account to cover potential future losses.
Margin calls are reserved for options sellers (writers) and futures traders, whose potential losses are theoretically unlimited or substantial, requiring collateral to be posted.
Glossar
Options Buyers
Premium ⎊ These participants are the counterparties who pay the premium to acquire the right to exercise the option, thereby securing potential upside leverage.
Short Option Position
Exposure ⎊ A short option position in cryptocurrency derivatives represents the acceptance of an obligation, contingent upon the underlying asset’s price movement relative to a predetermined strike price.