Margin for USDT margined options contracts is divided into options buyers (long positions) and options sellers (short positions).
Option Buyer's Margin
For the buyer of an option, the premium and estimated trading fees will be frozen as buyer's margin when placing an order, while initial margin and maintenance margin will not be required for placing orders or holding positions.
For more information please click here
Option buyer's margin = premium + estimated fees
= order price * amount + estimated fees
Option Buyer's Initial Margin IM = 0
Option Buyer's Maintenance Margin MM = 0
Example:
Option Seller's Margin
|
Options |
Initial margin for seller (short) |
Maintenance margin for seller (short) |
|
BTCUSDT call options |
|Position size in BTC| * {max [ 0.15*underlying price - max [ (strike price - underlying price), 0], 0.1*underlying price] + option mark price} |
|Position size in BTC| * [ 0.075*underlying price + option mark price] |
|
BTCUSDT put options |
|Position size in BTC| * max {max [ 0.15*underlying price - max [ (underlying price - strike price), 0], 0.1*underlying price] + option mark price, maintenance margin} |
|Position size in BTC| * [ max (0.075*underlying price, 0.075 * option mark price) + option mark price] |
Example: IM/MM (Regular Mode)
- Instrument: ETH-USDT-17NOV23-1850-P
- OTM=[Underlying-Strike]
- IM=Max(Max(15%Underlying-OTM,10%Underlying),MM
- MM=Max(7.5%Underlying, 7.5%Mark)+Mark
- Underlying around: 2098, Strike=1850, Mark=2.4
- OTM Amount=2098-1850=24815%. Underlying=314.7, 10% Underlying=209.8
- 7.5% Underlying=157.35
- MM=max(157.35,7.5%* 2.4)+2.4=159.75
- IM=-max(max(314.7-248,209.8)+2.4,159.75)=212.2
- Pos IM=50*212.2=10,610
- Pos MM=50*159.75=7987.5