Collateral covers margins for options over stocks and indices.
Collateral also covers risk margins for LEPOs, but not mark to market margins. Shares bought on margin may be eligible as collateral for written call option strategies. Please refer to Covered call writing for margin investors for more details. There are four different types of securities which OCH has approved as acceptable collateral to meet margin obligations. Tier 1 - Securities which are currently approved as underlying securities for options trading or securities which are able to meet ASX's criteria for approval as underlying securities but are not currently traded on the options market.