Hello everyone. I want to start trading in stock options, but right now got stuck. I want to understand/calculate, how much cash will be frozen in my account as a margin/guarantee deposit. Can someone, please, explain it to me? With a simple example, if you can. And English is my second language, so I am really sorry in advance for any confusion.
If you buy the option, the premium you paid is set aside. If you sell the option, 50% of 100 shares is set aside. Trading options without a local language resource is a very, very bad idea. You can lose more than your account value.