What are the margin requirements for options?

C2's option margin calculation system is pretty basic, but it covers 80% of the real world. For example, we recognize most simple multi-legged option strategies, including spreads, strangles, and straddles; but we don't always recognize multi-multi-legged margin reductions from things like butterflies or condors, or multi-spreads.

Our advice is: Try to make it work with C2's (conservative) margining system. Remember that the issue is solely related to your C2 Model Account, not real-life trading accounts. That is, your AutoTraders will have the benefit of their own brokers' (more favorable) margin systems when it comes to their real-life accounts.

The implication is that C2's Model Account margin use is more conservative than real life, so your customers will be able to trade your system with less capital than the C2 Model Account shows (assuming they want to have the least amount of capital possible; not always the case, of course).

You are free to mention this in your system description, if you think that is helpful.

(Optional: Finally, if you want to raise the amount of capital in your C2 Model Account because you were anticipating different margin requirements, we can do this for you once at the outset. Your account will suddenly have more capital in it (and your historical trades will grow larger by the same amount; think of it like a reverse stock split). If this is something you want done, just reach out to us at the Help Desk and we'll try to accommodate.)

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