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Go to http://www.theocc.com/risk-management/cpm/. Launch the online position editor. Pick an option you know trades at a low price that is OTM. Enter a position. Then go to http://www.cboe.com/tradtool/mcalc/default.aspx. Put the same position in. Check the difference. Reg-T looks at cash and...

No problem. interesting thing about portfolio margin. Because there is a minimum margin per option of $37.50 per option, buying low priced spreads have higher requirements under PM than reg-t.

What Platform? The margin requirement would be 15*7.90*100=$11850. Margin requirements for Reg-T accounts for a debit vertical spread is the net debit you are paying.

Your original assumption is correct for Reg-T margin accounts. Where are you seeing a different margin requirement? And, is it in a Reg-T or CPM account? Bob

Penson Futures has procured space in the new CME Co-Lo in Aurora, IL. for their clients. As Introducing Brokers to Penson Futures, we will have access. This is going to be the fastest connectivity to the CME. Bob

OddTrader: Please send me an e-mail with information about C2. I tried to PM and E-mail message you, but you're turned off. If never heard of the service. Bob

Because I have a tendency to hate buying premium, I would hedge a long portfolio with selling SPX OTM long dated calls. In theory, you've chosen these stocks because you feel they will outperform the market. So, I would not want to pay for insurance ALL the time. I believe the cost is too high...

You might be backwards. The AIG2 represents the common with the warrant as the value existed before the distribution. So, the old AIG is renamed AIG2. AIG2 is not a "NEW" contract, but a renaming of the old AIG contacts. The regular AIG options after that date are the NEW contracts, and don't...

Only options and option spreads because if your making two sided markets at the exchange, your order goes in front of the market makers. So, if your simulating market making as customer, they want you to pay extra as pro cust. This might also put you on parity with the MM rather than in front.

One advantage of the co-location at the exchange, is the direct connection to the CME and the direct connection to the data feeds. I find the clean fast data is more important.

AIG and AIG2 have different contact descriptions.

The definition is correct but the practical use of the Delta is to determine either your equivalent share position for risk purposes or to determine the hedge ratio if you choose to hedge it rather than close the position.

We offer two solutions though Penson Futures. You can be co-located at 350 Cermak (CME L-NET) and use CQG or any other futures platform Penson is certified with. http://www.pensonfutures.com/platforms.aspx Or, you can write to the Penson API or CME API directly which is faster. If you're...

No. FX is not a security, it's a cash swap of currencies. In the US you can get around 50-1 at some banks. Over seas in the UK I've heard of traders get up to 200 to 1. Crazy. Futures on FX and options on the futures are futures products. I don't do much FX right now. We concentrate on...

I'm not sure. I know very little about them. Go to https://cpm.theocc.com/tims_online.htm. If it's on the list, enter a position and you'll see the haircut on that position. If it's not on the list, it's most likely not included in CPM.

Because you and others refered to IB. I said there is no change, except IBs ad says you can trade everything in one account. It only appears that way, and cash in the futures portion, at any firm is not covered by SIPC.

Most Penson clients with CPM come through an Introducing Broker like my firm. We put up a deposit as security for our clients trading and are first loss after the client. Because of that, Penson tends to allow us to monitor risk unless excessive. As to Penson's stability, I can't give you a...

All firms that offer CPM have two requirements. Haircut which is calculated by the OCC with the TIMS calculation and risk. So lets say for this thread, that EVERY BD uses TIMS for haircut on marginable securities. Some firms add a risk premium that can change daily based on market conditions. As...

The CPM account is segregated from other customer accounts, not from the firm. Because it's a margin account, securities are held in street name. That's why SIPC is important. Each master account is not commingled with other traders from other master accounts. But, if you put together a trading...