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Hey Tonyf-Do you know if this is for all equity SMART orders or only from those using LITE?

Good morning turkeyneck, interesting member name. IMO, you need to have a detail knowledge of the risks of trading options. Then, you need to have an opinion on the direction or lack there of, of the security in question. After you have done that analysis and have an opinion that you have high...

Can you be more specific as to what you mean by currency. SIPC covers securities and CASH. Not futures, Crypto or FOREX. It does cover cash. I have never asked if the cash needs to be in USD.

https://www.sipc.org/for-investors/what-sipc-protects - "The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash."

For the OCC requirement, yes. But the OCC requires member firms to have higher house requirements for volatile and less liquid symbols. Also, some stocks are not marginable.

I think we missed the point because at no point did you say you wanted to avoid selling a long term position. A better process for brokers that allow the selling of tax lots is to do that or choose LIFO vs the default FIFO.

Why to which statement? He asked about boxed positions at different brokers. That can cause what I said at times. So it a risk of not closing.

If long in brokerage 1 and short in brokerage 2, each other broker would have no idea. You would have a higher margin requirement in both, possible buy-ins on the short stock, possible overnight charges on the short stock and possible interest on debit balances for the long stock.

Trading platforms show the net which is required so the broker can do a regulatory check to see if the stock requires a locate or is Threshold.

May I see one example? A boxed or identical L/S position is not a spread. Spreads are fine.

I have been in the business since 1981 and can't think of one good reason to be Long/Short the same exact Security or Derivative, which in essence makes you flat, no way to profit, vs closing the position. And it is possible that regulators do not allow boxed positions. I know the CME does not...

You should never by choice carry long/short the same option overnight. It might subject you to early assignment on the short side and both are carried in the same account type (Type 2 Margin) while a long/short stock position will be in two account types (Type 2 Margin for the long and Type 3...

As of today, no.

Each product group has a different shock. Equities are +/-15%. -5 and +5 are 15% moves with each interval being 3%. The OCC margin requirement for all your XOM positions, options and stock, shocked this way, determines the OCC requirement. In most cases, the up and down extremes are the max...

I would suggest you look at these for the official answer. https://www.sipc.org/for-investors/. In the past, all customer accounts were moved to another broker, very quickly.

BTW, the reason by this is so high in a PMA is that there is a minimum requirement of $37.50/Option. This type of spread should be lower in REG-T.

I ran this spread on the OCC calculator based on Friday's close 1X. The OCC margin is $75. For accounts under $5mm, Lightspeed/Wedbush add 20% for overnight risk. So with Lightspeed, in a PMA, the requirement 1X overnight would be $90 per spread. the net credit was $89 based on the file...

Can you provide a live example of a spread and if is reg-T or PM?

I had made that suggestion to Baron.

The OCC treats them the same, it is just that with the a shock for that product class, a short term option is more apt to be worth $0 than one with two years to go.