Why Does an Options Buyer Not Face Margin Calls?
An options buyer does not face margin calls because the option premium they pay upfront represents their maximum possible loss on the contract. Since their risk is capped and fully collateralized at the time of purchase, there is no risk of future losses exceeding the funds they have already committed.
This makes the buyer's position inherently lower risk than a futures position or a short option position.
Glossar
Buyer
Position ⎊ A buyer, within cryptocurrency, options, and derivatives markets, occupies the initiating role in acquiring an asset or contract, establishing a long exposure predicated on anticipated price appreciation or a hedging requirement.
Options Buyer
Participant ⎊ An Options Buyer, also known as the holder, is the market participant who initiates a long position in a derivative contract by paying a premium to the option seller.