Series 3: 4.1.8.2. Futures Options

Taken from our Series 3

4.1.8.2. Futures Options

For both futures and futures options, margin requirements are calculated daily by the exchange on which the commodities are trading. Margin requirements for these products vary more frequently and less predictably than equity options because the margin calculation is based, not only on the market price of the underlying position, but also its volatility and the exchange’s perception of its risk. Each exchange determines risk through the use of a pricing

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