Future margin requirements at Interactive broker

A

Alexpung

Hello,

I just started trading futures at interactive broker but I am confused with the margin requirements.

I have about 100k equity in single stock options and bonds plus some cash for future margins.

It is my understanding that I need cash (not equity with loan value) to maintain a future position.

What happens if:
One of my short option position get exercised bringing my cash below the maintenance margin of my future position? Or I lose badly and I pay too much cash at daily settlement?

I think IB will liquidate even if I have enough equity in bonds/options?

Sorry if this is a noob question.
 
ids said:
Equity with loan value is good to maintain a future position.
More...

First I am with IBHK

Thanks ids, but this
https://www.interactivebrokers.com.hk/en/index.php?f=marginnew-hk&p=overview2
seems to be indicating otherwise?

Real-Time Maintenance Margin Calculation
Our Real-Time Maintenance Margin calculation for commodities is shown below. The maintenance margin used in this calculation is set by the individual exchanges and listed on the Futures & FOPs Margin page. In the calculations below, "Excess Liquidity" refers to excess maintenance margin equity.

In addition, any account that has a negative cash balance on a trade date or settlement date basis will be liquidated. It should be noted whereas futures settle each night, futures options are generally treated on a premium style basis, which means that they will not settle until the options are sold or expire. Therefore, for certain combination futures and futures options positions, there may be a mismatch in cash flows which could cause cash to go negative even though Net Liquidation Value is positive. In addition, there are a handful of options where local custom is to cash settle the option each night at the clearing house (e.g. HKFE HSI Options), but we may choose to margin these options on a premium style basis.
 
It is an error. Thank you for pointing that out. We will change "negative cash balance" to "negative Net Liquidation Value".
 
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