How Does the Calculation Change for Non-Linear Derivative Contracts like Options?

For non-linear derivatives like options, margin calculation is much more complex than for linear futures. It involves calculating the maximum potential loss based on the option's 'Greeks' (Delta, Gamma, Vega, Theta), which measure the sensitivity to price, volatility, and time.

The exchange often uses a sophisticated risk model, like a portfolio margin system, to determine the margin, rather than a simple leverage-based percentage.