Traders are required to deposit margin funds to cover potential losses ¹. Here are some key things to know about margining ¹:

- Option margin is the amount a trader needs to deposit with a brokerage to cover potential losses on option positions.

- Options trading is leveraged, allowing traders to manage more securities with less capital.

- Margin requirements are set by brokers to mitigate associated risks.

- Margin in options trading is categorized into initial margin and maintenance margin.

- The initial margin is the amount a trader deposits with their broker when opening a position.

- The maintenance margin is the minimum account balance required to keep the position open.