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75 percent margin on Leaps?
- Thread starter nravo
- Start date
Quote from nravo:
A couple years ago, there was proposal floating around to allow 75 percent down on Leap purchases. Anything ever come of this or will come of this?
I trade LEAPS quite frequently and I have heard nothing of this. Perhaps the new portfolio margining rules took this proposal off the table. Why don;t you give your trading desk a call and see what they say?
Long Call â more than 9 months until expiration
Initial margin requirement:
75% of the total cost of the call(s)
after position is established, ongoing maintenance margin requirement applies and an increase_(or decrease) in the margin required is possible
at 9 months before expiration and afterwards, long calls no longer have value for margin equity purposes
Initial margin requirement:
75% of the total cost of the call(s)
after position is established, ongoing maintenance margin requirement applies and an increase_(or decrease) in the margin required is possible
at 9 months before expiration and afterwards, long calls no longer have value for margin equity purposes
Quote from spindr0:
Long Call â more than 9 months until expiration
Initial margin requirement:
75% of the total cost of the call(s)
after position is established, ongoing maintenance margin requirement applies and an increase_(or decrease) in the margin required is possible
at 9 months before expiration and afterwards, long calls no longer have value for margin equity purposes
I just checked IB's margin regs and long call is a long call regardless of time -- and requires 100% down. You know of a broker that allows 75% down for long-dated calls? Is this even allowed?
Brokers can require higher margin requirements than Reg T... and I don't know what other brokers, if any, offer this.I just checked IB's margin regs and long call is a long call regardless of time -- and requires 100% down. You know of a broker that allows 75% down for long-dated calls? Is this even allowed?
Is this even allowed? The info that I posted came from the CBOE's web site. If they're wrong, is anything right?
Quote from spindr0:
Brokers can require higher margin requirements than Reg T... and I don't know what other brokers, if any, offer this.
Is this even allowed? The info that I posted came from the CBOE's web site. If they're wrong, is anything right?
Just to repeat. Does anyone know of a broker that allows 75 percent margin on Leaps?