> For the complete documentation index, see [llms.txt](https://support.optionsai.com/options-ai-support/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://support.optionsai.com/options-ai-support/trading/margin-requirements-available-funds-and-account-value.md).

# Margin Requirements, Available Funds & Account Value

## What are the margin requirements for options?

All option spreads require level 3 options approval and must be traded in a margin account. The following summarizes the margin that is required at the time of opening an options strategy in a margin account..

<table><thead><tr><th width="189">Strategy</th><th width="356.3333333333333">Margin Requirement</th><th>Note</th></tr></thead><tbody><tr><td>Long Call or Long Put</td><td>100% of the debit (premium paid) to open the position</td><td></td></tr><tr><td>Covered Call</td><td>No additional margin requirement when an equal number of underlying shares are held</td><td></td></tr><tr><td>(Naked) Short Put</td><td>The greater of the following (multiplied by the number of contracts x 100):<br>a] 20% of the underlying price <em>minus</em> the out-the-money amount <em>plus</em> the option premium<br>b] 10% of the strike price plus the option premium<br>c] $2.50</td><td>The premium received from the sale of the short put may be applied to the margin requirement</td></tr><tr><td>Debit Call Spread / Debit Put Spread</td><td>100% of the net debit (premium paid) to open the position</td><td></td></tr><tr><td>Credit Call Spread / Credit Put Spread</td><td>The difference between the long and short strikes (spread width) multiplied by the number of contracts x 100</td><td>The premium received (net credit) from opening the position may be applied to the margin requirement</td></tr><tr><td>Iron Condor  / Iron Butterfly</td><td>The spread width of either the short call spread or short put spread side of the strategy (the wider spread if not equal) multiplied by the number of contracts x 100</td><td>The premium received (net credit) from opening the position may be applied to the margin requirement</td></tr></tbody></table>

## How does margin requirement relate to Available Funds?

Available Funds is the cash that an account has available for opening new positions.

When you open a new position your account must have sufficient Available Funds to cover the margin requirement of the position, plus applicable commissions, regulatory, exchange and clearing fees.&#x20;

Therefore, when you open a new position, your available funds will decrease by this amount.

Please note, since the premium received from opening a credit spread is applied to the margin requirement, it may not be used to open new positions and is not therefore reflected in the Available Funds balance.

## How is Account Value calculated?

Account Value is the sum of (a) available funds for trading, plus (b) the current mark-to-market value of any open positions.

## Why do I have an unexpected Account Value? &#x20;

Account balances can appear distorted or have an unexpected value for a number of reasons. These may include positions not yet having settled, [early assignment](/options-ai-support/trading/early-assignment.md) of an options position or a corporate action taking place.

It may also be due the current mark-to-market value of an open position:

{% hint style="info" %}
The mark-to-market value and implied profit/loss of less liquid option positions can be impacted by wide bid/ask spreads and/or stale last trade prices.&#x20;

This may be exacerbated when calculating the position value of multi-leg options spreads, particularly since market makers are not obligated to trade at the NBBO.
{% endhint %}

As a result, the current value and implied P/L of all options positions should be viewed as indicative only and may not represent where actual market liquidity may currently be found.