What is an Options Margin Call?

A margin call is when CommSec requires a client who has written options to provide additional cash or stock as collateral for their open positions. Failure to meet a margin call may result in CommSec closing down your options positions without further reference to you.

A margin call can be triggered for a variety of reasons, but the most common reasons are:

  • The market moves against you relative to your position, thus increasing your potential obligation under the options contract.
  • ASX Clear increases the margin requirement on your positions, or, alternatively reduces the collateral value allowed on your shares lodged as cover.

For further clarification, please call the CommSec Options Desk on 1800 245 698 or +61 2 9115 1532 from outside Australia (8am to 5:30pm Monday to Friday Sydney time).

 

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