How to read this margin impact on IB

T

traderwald

Hi guys,

I am trying to do a credit spread trade on the IB trader workstation paper trading account and got this as margin impact. How do I read this - what is the margin required ? Is it the first column or the second column or the third one that shows the margin required to do this trade ?

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Thank you
 

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Below is a example trade scenario that I am trying and the margin window when I try to submit this. Is it possible to find which column is the margin column based on this ?


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What is the price of the underlying? Can you give me the ticker?

Thanks.

FYI: The way you have your diagonal setup will require more margin relative to a traditional diagonal. It seems that IBR is treating the margin requirement as if it is a naked option because of how you have it set up. The short option is typically front-month with the long option back-month. Your setup is opposite and margin requirement is being treated as if it is a naked option not a diagonal spread. Also check @commiebat comment at https://www.elitetrader.com/et/threads/any-margin-requirment-for-diagonal-spread.109191/
 
Last edited:
As far as I'm concerned you'll need to post initial margin at execution and maintain maintenance margin in your account throughout the life of the spread.

The margin requirement calculations for IBR (USA) is found at https://www.interactivebrokers.com/...hm=us&ex=us&rgt=1&rsk=0&pm=1&rst=101004100808.

Check https://www.thebalance.com/all-about-futures-margin-on-futures-contracts-809390 & https://www.investopedia.com/ask/an...een-initial-margin-and-maintenance-margin.asp for more information about margin requirements and how they work.

& check my edit in my previous comment.
 
Amahrix said:
What is the price of the underlying? Can you give me the ticker?

Thanks.

FYI: The way you have your diagonal setup will require more margin relative to a traditional diagonal. It seems that IBR is treating the margin requirement as if it is a naked option because of how you have it set up. The short option is typically front-month with the long option back-month. Your setup is opposite and margin requirement is being treated as if it is a naked option not a diagonal spread. Also check @commiebat comment at https://www.elitetrader.com/et/threads/any-margin-requirment-for-diagonal-spread.109191/
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Thank you Amahrix,

How does a short option short term and long option long term combo make money ? I presume it will initially a debit ? and then the Long option needs get ITM for the spread to make money ?
 
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