Advanced traders with high account balances (typically over $125k) may qualify for Portfolio Margin , a risk-based system that can significantly lower margin requirements for hedged positions. Margin Buying Power - Firstrade Securities

Leverage can amplify gains, but it can also cause you to lose more than your initial investment if the market moves against you.

While you often can't use margin to buy the options, you can sometimes use the value of your options as collateral to increase your overall account's Buying Power . The "Two Sides" of Margin Requirements

If the value of your account equity falls below the Maintenance Margin , your broker will issue a margin call, requiring you to deposit more cash or liquidate positions immediately.

Collateral to ensure you can fulfill the obligation if assigned.

Trading options on margin allows you to leverage your existing capital to control larger positions, but it operates under much stricter rules than traditional stock margin. While you can borrow money to buy certain long-term options, most standard option purchases must be paid for in full.

Using margin to trade options introduces layers of risk beyond standard cash trading: