Buying Options On Margin May 2026

If the value of your account equity falls below the Maintenance Margin , your broker will issue a margin call, requiring you to deposit more cash or liquidate positions immediately.

Options with more than 9 months to expiration are often marginable. You may be allowed to borrow up to 25% of the cost, meaning you must put up an initial margin of 75%. buying options on margin

Options with 9 months or less until expiration cannot be purchased on margin. You must pay 100% of the premium upfront. If the value of your account equity falls

Borrowing from your broker isn't free. You will accrue Interest on any debit balance, which can eat into your potential profits. Options with 9 months or less until expiration

Leverage can amplify gains, but it can also cause you to lose more than your initial investment if the market moves against you.