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Not on live account no. If the liquidity is there I don't see the issue. The brokerage receives commission for each contract after all.

Well, TD Ameritrade allows it.

So, further to previous posts I have made in relation to my paper trading journey on IB, I am faced with yet another issue. When attempting to trade large-size options contracts, I am receiving a message informing me the order is rejected, as it is too large. Having used other paper trading...

I am using a margin account.

Really? IB definitely seems to have the monopoly on trading in many counties. I still long to see the day where TD opens up to the rest of the world again. Perhaps with the Charles Schwab acquisition, that may happen soon. Who knows.

Yes I intend to do that. I have already been approved for a live account with IB, although I have yet to fund it. Since 2018, TD is unavailable to European citizens, and most countries around the world.

I certainly hope not. From my experience so far, TD's paper money account has been quite a bit more accurate.

Here is a screenshot of a put credit spread using the same strikes, on TD.

IB paper money SPX options are not working for me right now. That is another thing, the paper money platform is full of bugs. Anyhow, the margin for puts exhibit the same results as the calls on IB, distance between strikes is what is required as margin. Which is not the method other brokers...

Yes I have done so on both accounts. The reality is, TD only requires difference in strike prices minus credit received as margin for credit spreads. Whereas IB does not apply credit received to the trade, thus margin is distance between strikes only. It is an expensive way of doing business. I...

Same result, only five times less. IB requiring 100k margin for 10 contracts, whereas TD requires only max loss as margin, in this case 0.

Funny that. The margin requirement is difference between strikes and max loss. I'll make it simple and attach a screenshot of same trade, only Apr 14th expiry this time, from my Thinkorswim paper account for reference. And see the difference. IB is screwing people on margins.

Yes it seems so, despite their insistence to the contrary. Quite ridiculous really, when the same trades on TOS can be executed for far less.

That is the whole point. Why would one need 500k in margin for 50 contracts of a 100-distance spread? Credit spread margin requirement is distance in strikes minus credit received. That is the way it works with most other option brokers I know of.

I posted yesterday about the frustrating process of attempting to execute vertical credit spread options on the Interactive Brokers platform. This is a paper account. I am trying to open a credit spread, 50 contracts, with a 100-wide strike difference. I have set the limit price to 102, which is...

Ok that is clear to me. I have not experienced that on paper money thus far, like I say I receive an order rejection message if I attempt to sell multiple contracts, even if the margin would otherwise be zero. I have received similar messages for Butterfly spreads, Calendars, Iron Condors etc. I...

Hi Robert, thank you for the reply. Yes it is options spreads I am referring to, not futures as that is a separate product I am aware of. So are you saying that IB's margin requirements for a vertical spread is in fact the difference between strikes, minus any credit received? I have attached a...

Hello all Recently I opened a paper money account with Interactive Brokers, mainly with the purpose of trading options to test strategies etc. Previously, I had traded paper money on Thinkorswim. However due to the fact I live in Europe, I would be unable to open a live account with TD in the...

There needs to be sufficient liquidity to open 1 thousand, 10 thousand, or even 100 thousand options contracts. Depending on the underlying instrument, this may range from realistic to improbable.

Yes. I wait for the mid to decrease to a price lower than the credit I receive. I set up a limit order accordingly.