Exceptions to margin requirement

If a client only holds bought Forex Options then no margin is required to hold the Forex Option positions. However, cash is required to pay the premiums for the bought Forex Options. If a client, in addition to bought options, chooses to trade in margin instruments (spot and sold options) that would change the delta exposure in the existing portfolio, the system uses the Delta Vega margin methodology on the entire portfolio in the given current cross(es). This would include an option being exercised into a spot trade at expiry. Square positions for Forex Options or Forex spot are not taken into consideration.