Bye-bye reg T

Quote from just21:

Portfolio Margin Enhancement

Dear IB Trader,

Modifications are being made to the margin offset for positions in high cap, broad based indices and non high cap broad based indices (some examples: SPX, NDX, OEX, RUT). Margin requirements associated with these positions will be increasing.

As a result of the change previously described, we believe that the requirements will change as follows in this account.


My PM has gone up over 100%! That didn't last long.
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How is that an enhancement?
 
Just21 - You mention a 100% increase. In a hypothetical example, does it work out as follows:


Reg T Margin - $100,000

Portfolio Margin - $20,000

NEW Portfolio Margin - $40,000

If so, although it increased 100%, you are still better off.
 
No, it is not a straightforward increase. It will affect only portfolios that utilize offsetting between broad-based indices on one side and small cap & NASD on other side. Those who uses this particular strategy, please watch out. The margin increase depends on a concrete structure of the portfolio. In most cases it is none to insignificant. We found out a flaw in our risk estimations in this particular case and we MUST fix it.
 
Quote from ids:

No, it is not a straightforward increase. It will affect only portfolios that utilize offsetting between broad-based indices on one side and small cap & NASD on other side. Those who uses this particular strategy, please watch out. The margin increase depends on a concrete structure of the portfolio. In most cases it is none to insignificant. We found out a flaw in our risk estimations in this particular case and we MUST fix it.
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My account is only short SPX and ES calls. I do not have small cap or NASD stocks in it. I do have one small stock position on the LSE. Why did I get the email? When is the change coming going to happen?
 
Quote from ids:

I sent you PM. If you do not utilize this strategy, there is nothing to worry about.
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hi ids, anything new with PM? I haven't heard a peep from IB about the new PM calculations after the initial email last week.
 
I know , I know , nobody buying premium here...but just in case : best way to enter delta neutral ( when using PM) is to short the stock and long calls.
I am using Generic combo limit order to enter position ; zero slippage
 
Quote from IV_Trader:

I know , I know , nobody buying premium here...but just in case : best way to enter delta neutral ( when using PM) is to short the stock and long calls.
I am using Generic combo limit order to enter position ; zero slippage
More...

Long synthetic put? Why?
 
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