can anyone explain the logic behind this? it's a debit spread, on the same underlying, yet they still charge margin.
IB charges margin on VIX long verticals
- Thread starter ferrycorsten
- Start date
I noticed that too.
I believe it's a glitch in their system. I found a workaround: trade credit spreads instead of debit spreads.
For example: lets say you want to enter 14/16 call spread at 0.50. You capital requirement should be $5050 - instead, they ask for $150 margin, so it's $200. If you do 14/16 put credit spread for 1.50 credit, your margin will be $200, so your capital requirement will be 200-150=$50.
No they don't.
Same maturity?
Yes they do.
trust me what i'm saying is true. same maturity. they are charging me margin on a pure long call spread.
nice suggestion
You should contact them. Obviously the margin on a vertical call spread should not be more than the net debit.
You should get a response in a week!
1245
I called them today. Their response was "we have special margin requirements for commodities". I said are you telling me I should have 5k in margin on a long call spread that costed me 2k? This is absurd. What can I do? I have to go through five people to reach the margin department. That's how hard it is to reach them.
I hope someone from IB sees this and corrects the matter soon.
What's the other exposure to VIX in your account?