You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Bye-bye reg T
- Thread starter just21
- Start date
Quote from Optionspoet:
I'm with Mav on this one. ToS states that they most will more likely than not require a minimum capital. Although unconfirmed, they states it would be approx. 100K. They also stated that there is a possibility that it will not be implemented on April 2, but soon afterwards.
Tom Sosnoff has stated it will be 100k. All you have to do is e-mail him.
Quote from Maverick74:
Tom Sosnoff has stated it will be 100k. All you have to do is e-mail him.
i knew you were right......
in your opinion, if pm was approved for all asset levels; what margin advantage would futures and future options have? wouldn't they(future options) become obsolete?
TOS clears through Penson, fwiw.
http://www.interactivebrokers.com/en/trading/marginRequirements/PortfolioMargin.php?ib_entity=llc
as predicted:
Here is a quote from the highlights:
Interactive Brokersâ real-time margining system enables us to qualify for an exemption to the Day Trading Rules and so no Day Trading Rules will apply for Portfolio Margin accounts (these rules will still apply for Reg T margin accounts).
So NO Day trading rules will apply to accounts > 100K.
as predicted:
Here is a quote from the highlights:
Interactive Brokersâ real-time margining system enables us to qualify for an exemption to the Day Trading Rules and so no Day Trading Rules will apply for Portfolio Margin accounts (these rules will still apply for Reg T margin accounts).
So NO Day trading rules will apply to accounts > 100K.
Quote from Maverick74:
I believe you are incorrect about that mksl. Think about this for a second. What point would it serve for a trader to open a PMA account, say with Fimat, and then open a separate account under the same name, with the same broker that is not PMA where he can daytrade? From a regulatory perspective and compliance perspective, what exactly does this solve? Use some common sense here, the SEC would laugh that out of the park. LOL.
It actually is better than expected - No Day Trading rules will apply to Portfolio Margin Accounts - still laughing???
Quote from mskl:
It actually is better than expected - No Day Trading rules will apply to Portfolio Margin Accounts - still laughing???
I stand corrected. IB is exempt from PDT, Fimat and TOS is not. However, I did notice all these added restrictions at IB on top of the PM:
A market-based stress of the underlying. A five standard deviation historical move is computed for each class. This five standard deviation move is based on 30 days of high, low, open, and close data from Bloomberg excluding holidays and weekends. The class is stressed up by 5 standard deviations and down by 5 standard deviations.
An implied volatility stress for options. Each options classâs implied volatility is increased by 15% and decreased by 15%.
In addition to the stress parameters above the following minimums will also be applied:
Classes with large single concentrations will have a margin requirement of 30% applied to the concentrated position.
This is a huge penalty for those whose positions are all concentrated in SPX, RUT, etc.
Also, the second your account drops below 100k, your account immediately reverts back to Reg T. Oh, that will be fun for some. The margin calls this is going to produce will be fun to watch. LOL.