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Slovník pojmů a strategií
pro obchodování opcí
Kompletní slovník opcí: strategie, pojmy, řecká písmena a postupy pro výpis opcí. Přehledně, srozumitelně, pro začátečníky i pokročilé. Naučte se obchodovat opce efektivně.
Basic concepts
Beginner
Margin Call
A broker's call to replenish the account capital due to insufficient coverage of open positions.
Detail
A Margin Call is a situation where a broker asks a trader to immediately increase their account balance because the account value has fallen below the required margin level. This occurs when the market moves against open positions (e.g. written options) and the account balance is no longer sufficient to cover potential losses. If the trader does not replenish cash, hedge, or close out some of their positions, the broker will automatically close open positions (forced liquidation) to protect itself. Margin Call protects the broker, but it can mean the realization of losses at an inopportune moment. This is especially true for option statements, short stocks, futures, and leveraged strategies.
A Margin Call is the result of a situation where losses from open positions reduce the value of the account below the minimum margin requirement. The broker then calls on the client to immediately deposit additional funds or reduce the size of the positions (by closing some of the trades or reducing the margin requirement using a hedge). If the client does not respond in time, the broker has the right to automatically close some or all of the positions. A margin call often occurs during significant market movements, increased volatility, or a sharp decline in the underlying asset against which the position is open. A Margin Call is a serious signal that the trader is taking too much risk with respect to his account.
Optimal conditions
Occurs when the market moves against open positions and the account balance is not sufficient to cover the margin. Typically when writing naked options (naked call/put), large movements in stocks, decline in the value of collateral (e.g. short stocks, futures). Margin Call can be avoided by properly managing position size, having sufficient cash and choosing less risky options (e.g. spreads instead of naked statements).
Max profit
None. Margin Call is a warning that protects the broker. At this point, the goal is to minimize losses, not make a profit.
Max loss
Unlimited if the trader does not react and the market continues to move against him. If the broker intervenes and closes the positions, the loss may be greater than the trader had available in the account.
Risks
Immediate closing of positions by the broker, realization of large losses, loss of more than the available balance in the account, psychological stress, inability to react in time. Possibility of debt to the broker. Margin Call usually comes at the worst moment — during high volatility.
Greeks
It is indirectly related to Delta and Gamma (large market movements increase losses and the risk of margin calls). Vega (a sharp increase in volatility) can also cause an increase in margin requirements.
Variations
Margin Call for options statements, for short stocks, for futures, for leveraged ETFs. Difference between Initial Margin Call (at the beginning of a position), Maintenance Margin Call (while holding a position).
Usage example
I write a naked call option on TSLA strike 900, accepting a premium of $10.00 (=$1,000). The price of TSLA will rise from 850 to 1,000, which means that my loss will increase dramatically. The broker calculates that the margin required is now $40,000, but I only have $15,000 in my account. The broker sends me a margin call requesting me to replenish $25,000. If I do not replenish, the broker may automatically close another position, or even this losing one.
DTE
If an option is nearing expiration and is ITM, there are higher margin requirements and thus a greater risk of margin call. Nearing expiration and ITM options increase assignment risk, which affects margin.
IV (implied volatility)
Increasing IV can dramatically increase margin requirements (as the risk of market movement increases), which can lead to a margin call even if the underlying price does not change.
Premium
The premium received from the option statement covers part of the margin, but if the market goes against us, it is not enough to cover losses. The premium received does not guarantee protection against a margin call.
Margin
Margin Call is related to a lack of cash in the account. It is necessary to have sufficient capital in the account to cover open positions. Margin Call means that the current cash is not enough.
Poznámky
Margin Call is a warning that the account is under pressure. It is necessary to always keep a cash reserve to cover fluctuations. It is recommended not to take on too large positions without proper coverage. It can actually come without warning during extreme market movements. If the trader does not react, the broker can close all positions.
Tags
margin call, call for capital replenishment, broker, closing positions, forced liquidation, margin, position coverage, risk, automatic closing
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