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

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.

How Does Margin Requirements Differ for an Option Buyer versus an Option Writer?

What Is a ‘Portfolio Margin’ System?

How Does MTM Relate to Margin Requirements?

What Is the Difference between an American-Style and European-Style Option in the Crypto Market?

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

How Does MTM Apply to Perpetual Futures in Cryptocurrency Markets?

Does Marking-to-Market Occur in Options Trading in the Same Way as Futures?

Why Is the Premium Generally Higher for an American-Style Option than a European-Style Option?