Bye-bye reg T

Quote from Maverick74:

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 class’s 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.
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Perhaps there still are some minor advantages to having a JBO - but they are minor (ie. my margin requirement just fell about 94 %)

Should be fun............
 
Quote from mskl:

Perhaps there still are some minor advantages to having a JBO - but they are minor (ie. my margin requirement just fell about 94 %)

Should be fun............
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How did your margin requirement fall 94%???? Please cite your example. You can't reduce your margins by 94% in any account. You are not blowing hot air are you?
 
Has anyone had any luck with IB's portfolio margin demo? It is very flakey (the market data is coming and going). Or maybe it's because there are 20000 people trying to use it now.
 
Quote from Maverick74:

How did your margin requirement fall 94%???? Please cite your example. You can't reduce your margins by 94% in any account. You are not blowing hot air are you?
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LOL - you're pretty funny:

Here it is:

In one of my accounts I mainly have Conversions/Reconversions.

My current Reg-T margin requirement is over $350 K. With Portfolio Margin - I will be charged the minimum per option contract (about 600 options X 37.50) or $22,250 - no direction risk or volatility risk

A Micro Example:

Long 1,000 shares of IBM at $104

Short 10 APR $100 Calls
Long 10 APR $100 Puts

Under Reg-t - My Margin requirement would be $52,000. Under Portfolio Margin the requirement would be the minimum or $750 (20 contacts x $37.50) a decrease of almost 99%
 
Quote from deviltrader:

Has anyone had any luck with IB's portfolio margin demo? It is very flakey (the market data is coming and going). Or maybe it's because there are 20000 people trying to use it now.
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yes - it worked for me. But I tried it a couple of hours ago.
 
Quote from mskl:

LOL - you're pretty funny:

Here it is:

In one of my accounts I mainly have Conversions/Reconversions.

My current Reg-T margin requirement is over $350 K. With Portfolio Margin - I will be charged the minimum per option contract (about 600 options X 37.50) or $22,250 - no direction risk or volatility risk

A Micro Example:

Long 1,000 shares of IBM at $104

Short 10 APR $100 Calls
Long 10 APR $100 Puts

Under Reg-t - My Margin requirement would be $52,000. Under Portfolio Margin the requirement would be the minimum or $750 (20 contacts x $37.50) a decrease of almost 99%
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I seriously doubt you are trading conversions and reversals off the floor for negative edge. And the con/rev is not a position per se. I'm not trying to be a dick, but I'm not buying this. LOL.
 
Quote from Maverick74:

I seriously doubt you are trading conversions and reversals off the floor for negative edge. And the con/rev is not a position per se. I'm not trying to be a dick, but I'm not buying this. LOL.
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too funny....

I've been doing it for years - I track the entire options market but mainly only do conversions on the front month. In many cases (high priced stocks) I have not been able to compete as my ROE would be so low because of Reg-T - now a conversion in GOOG will cost me the same as a conversion in a $5 stock.

But whatever......

It's nice to have doubters.....

Later, gotta put the kids to bed.
 
So for pure intraday stock trading, based on the IB demo, looks like ur buying power goes to around 7x instead of the current 4x for taking individual stock positions. Also it does not take into account if you are say long QCOM and short QQQQ, no reduction in margin requirements for that type of hedge it seems.... i wonder why
 
I found this statement by IB curious.

"Of course for some accounts with risky positions, Portfolio Margin can require more margin than under Reg T. That’s the point of Portfolio Margin, for margin requirements to more accurately reflect the actual risk of the positions in an account. It should be noted that for customers with highly concentrated accounts, Portfolio Margin may calculate higher margin requirements under Reg T. Portfolio Margin must assess proportionately larger margin for accounts whose positions are concentrated in a relatively small number of stocks."
 
Quote from Don Bright:

Still, half is a bummer. But, things are changing...BofA and others have "no comission" trading (sort of).

Don
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:eek: :eek: :eek: :eek:

Can you explain the "sort of" part?

nitro
 
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