Does anyone know in detail how do the Brokers compute PORTFOLIO MARGIN?

[tabasco mark]

I know they use the TIMS in general but it is almost impossible
to understand and expect the Fluctuations of the Margin .
Is there someone who understands the Black Box ?

thanks

 

[rmorse]

Quote from tabasco mark:

I know they use the TIMS in general but it is almost impossible
to understand and expect the Fluctuations of the Margin .
Is there someone who understands the Black Box ?

thanks

If you're looking for a general rule of thumb, for equity positions, look at you potential loss from a 15% move up or down, and that will be close to your haircut. Feel free to call me if you like, I'll try to help.

Bob

 

[daveyc]

Quote from tabasco mark:

I know they use the TIMS in general but it is almost impossible
to understand and expect the Fluctuations of the Margin .
Is there someone who understands the Black Box ?

thanks

may i ask, what options strategy are you considering for use in your portfolio margined acct?

i know i don't have to tell you, be very careful with this, its nice to have but understand the power of this leverage you intend to use, it works both ways. understand that a screw up can take you out of the game. good luck.

 

[tabasco mark]

Thanks ,
it's like driving a sports car with out
having control on the steering wheel .
this rule I know but the TIMS formula or
whatever they use is more complex than that ..

 

[Options12]

Quote from tabasco mark:

I know they use the TIMS in general but it is almost impossible
to understand and expect the Fluctuations of the Margin .
Is there someone who understands the Black Box ?

thanks

This info may be too general for you but the citations in the Endnotes might provide some direction.

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p018677.pdf

 

[daveyc]

consider also options on futures to get that sort of leverage with a standard margin acct.

 

[atticus]

PM factors a ticker-concentration. Bitching/whining about it won't help.

 

[Options12]

Quote from rmorse:

Feel free to call me if you like, I'll try to help.

What is your firm's minimum requirement for PM accounts? I know IB requires 100K. Does anyone know what other firms (eTrade, TD, etc) require?

 

[daveyc]

Quote from Options12:

What is your firm's minimum requirement for PM accounts? I know IB requires 100K. Does anyone know what other firms (eTrade, TD, etc) require?

tos by td is 125k

 

[rmorse]

Quote from Options12:

What is your firm's minimum requirement for PM accounts? I know IB requires 100K. Does anyone know what other firms (eTrade, TD, etc) require?

The SEC regulation for CPM is $100K. Our minimum is higher. It does not make sense to open an account near $100K and risk conversion to REG-T one morning from a small account draw down. Give me a call and we can discuss it.

Bob