Does MTM Apply to American-Style Options on Spot Cryptocurrencies? ▴ Learn

Does MTM Apply to American-Style Options on Spot Cryptocurrencies?

Mark-to-market does not typically apply to the option's premium itself for American-style options on spot cryptocurrencies. The premium is paid upfront.

However, the option writer's margin requirement is marked-to-market daily to ensure sufficient collateral is held to cover potential losses. The option buyer's position value is also marked-to-market for accounting purposes.

Does MTM Apply to Options Contracts in the Same Way as Futures?

How Do Exchanges Use MTM Data to Calculate Margin Requirements?

What Is the Difference between Initial Margin and Variation Margin (Maintenance Margin)?

Is Marking-to-Market a Feature of European-Style Options?