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I just upgraded from build 949X to 9502 since it was “officially” released at some point today, I know it’s been in beta testing for a while – probably should have not come out – read below. I used to be able to show all my option (as in FOPs) legs individually, and have the native exchange...

I’ve been trading NG ON-series options now for a couple years at IB, decent volume and OI in the front month and the one back from that, plus access to the native spread market for certain order types (but not all supported at IB). The LNE-series though seem to be a much better trading vehicle...

It was figured out a long time ago when the fee kicks in, just keep your total loss exposure below 125,000 USD. In other words, if your position(s) move 30% up or down (equity has a special 20% up move, so calculate it based on that) overnight would your account have a negative liquidation value...

That’s correct. I’ve been trading option on futures spreads for a few years now but almost exclusively on the SGX exchange. They don’t support native option spreads, and at times the posted bid-ask spread can get really wide even though you can get a much better execution price if you start at...

Thanks for the information, I’m a big fan of using exchange supported spreads over the synthetic alternatives because they almost always (if not always) provide a better execution price and nullify leg-risk. Do you or any of your traders use Futures Options? I’ve read some old previous posts...

Yes, I’m talking about carry trades. As I mentioned in my last sentence, the trade must be understood but the fact this trader wouldn’t be leveraging it the directional risk has less importance. If he/she were to leverage up, yes, directional risk could ruin an otherwise good trade that the...

You can FX carry trade the exact amount of cash you have in the account, this would represent zero margin impact, and ideally higher credit interest payments from IB. This is done professionally, though they use leverage (and margin) and eventually invest/trade the proceeds. If you’re not...

Yes, it was not clear from my post but when I say “exposure” I do mean “excess exposure” based on my Net Liquation Value. Thanks. The fee however, at least for equity and there indexes are based on a -30/+20 theoretical move. Do you or anyone else know how commodities, interest rates, and FX...

It’s been just over a couple months now since they implemented this fee, I think enough people have received different language/details of how it works to almost fully understand it, certainly when it comes to a single underlying its fairly straightforward. Does anyone have experience trading...

It’s been like this ever since they launched the updated “look and feel” for the IB website. To my knowledge, and based on my experience the margins for futures and FOPs are exactly the same as US accounts. The only margin differences between US and Canadian accounts are for stocks and...

Thanks, those two clarifications differently make sense based on what I’ve been finding. I fundamentally agree with your comments.

Your analysis is correct, and much further below is some more of my own. Excluding the calculation done to your “cash” holdings, all other positions (and your account) are recalculated in the event of a 30% down move, with what appears to be no bias toward underlying risk – equity...

All things considered, IB is in a league of its own. I will disclose I’m Canadian, which does reduce some options compared to US citizens, but I will specifically add to your list choice of markets – nobody outside of investment banks offer the choice they do – furthermore, inside the...

I’m in the same situation as you; however, up until this point I have not received any further communication from IB regarding this fee. I can only speculate, if they did second guess there decision (to implement the fee) the easiest way would be to just stop the charge from being posted to...

A trader being “over leveraged” is subjective – very much so actually. A trader being (or not being) margin compliant is not, this can be determined in less than one second. In addition, and in IBs case, your position(s) will be liquidated in real-time should your excess liquidity go...

Your representative basically confirms what I’ve so far found. It appears the algorithm (simple calculation) is indeed quite simple. Unless provided with a maximum negative equity number, upon -30/+30% underlying/account loss in which the fee wouldn’t apply, it will be charged should this...

Sorry, that’s the link however when I switch browsers I can see the issue you’re having. This link contains the same information as your link, however with the added table. I have attached the webpage, in text format saved from my browser. It did not save the text part we both see (go...

I believe IB has been updating its website with regards to the exposure fee. Please see this link for details on the fee itself, the table is at the bottom; https://gdcdyn.interactivebrokers.com/Universal/jsp/Reference/masterReference.jsp?jump=7151 This makes it more clear (though I still...

I agree that this is IB trying to protect themselves, but the way it’s being done is not transparent at all. Let us see the calculation, apply it in real-time, and let the traders adjust positions as needed (or not) based on it. This can be implemented just like real-time margins; I would...

I don’t want to argue the value or fairness, however I wonder have people been getting this all the time, or has this recently been more prevalent? I’m thinking people have received this before, not bothering to post about it perhaps in embarrassment (which really shouldn’t be the...