Trading conditions for options
In order to calculate the margin as accurately as possible, the Infront Portfolio Manager requires the above-mentioned margin interval as well as some other parameters of the trading conditions for options. These settings must be maintained manually. The command TRADING CONDITIONS FOR OPTIONS in the menu of the "Manage objects" icon on the "Data maintenance" tab in the ribbon takes you to a form that allows you to define the trading conditions for each underlying.
To the individual columns:
| Column | Description |
|---|---|
Margin class | Eurex margin class abbreviation for the underlying. This is required for the import of the Eurex margin parameter file. It is therefore essential that you first enter the abbreviations for your underlyings here (e.g. "DTE" for Deutsche Telekom AG or "ESX" for the Euro Stoxx 50). Please refer to the Eurex product information. |
Contract size | The denomination in which the options on an underlying can be traded on Eurex. Eurex publishes these in its product definitions. The contract size is relevant for stock options. |
Margin interval | The margin interval of the underlying is entered here. For indices this is an absolute point amount, for shares a percentage. |
Minimum | The "out-of-the-money" minimum for the margin calculation of the underlying. Eurex requires a minimum margin for short options that are out of the money, irrespective of the theoretical option prices. This is currently 25% of the absolute margin interval for all underlyings. |
Point value | The point value for index options, i.e. the value of one index point per contract, plays a similar role to the contract size for equity options. The point value can also be found in the Eurex product information. |
The importance of this configuration for master data maintenance has decreased since the introduction of the master data fields "Contract size" and "Point value" for options. The link of this default configuration remains related to the (price quotation) underlying.