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In Options Trading, What Is the Equivalent Concept to Initial Margin in Futures?

In options trading, the concept equivalent to initial margin for a short option position is the premium received plus a margin requirement calculated based on the risk of the position. For long options, the premium paid is the maximum loss, so a margin is typically not required beyond the premium itself.

For short positions, the margin ensures coverage for potential losses beyond the premium received.

How Is the Margin for a Written Option Calculated?
How Does the Concept of “Margin” Apply to Derivatives Trading?
Explain the Difference between Initial Margin and Variation Margin
What Is the Concept of “Collateral” in a Short-Selling Transaction?