IB Crude Oil Margin Reqs

[trader07]

Quote from ids:

Please, stop this nonsense. We take margin requirements right from the exchange. We stripped intraday special margins a few months ago. That is it. Right now, maintenance margin for NYMEX CL is $4000. Initial is $5400.

When I check this through TWS it shows initial margin of $6,412.50 and maintenance of $4,750.

 

[ids]

That is right. Front month is different. Once again, we just follow NYMEX increase. There was no any changes that depend on our policies. Why you are complaining when your own quote confirms it? Also, it can help to look at http://www.nymex.com/notice_to_member.aspx?id=ntm479&archive=2007

 

[Zanatos]

Ids...and others...it seems that IB has indeed been consistent with the Nymex margin rate increases as of late..and have always charged the customer rate..this from the other press release:

"NYMEX to Change Margins for Crude Oil, Related Futures Contracts

NEW YORK, N.Y., October 16, 2007 -- The New York Mercantile Exchange, Inc. today announced margin changes for its crude oil and related futures contracts, beginning at the close of business tomorrow.

Margins for the November 2007 crude oil, crude oil calendar swap, and crude oil financial futures contracts will increase to $4,000 from $3,000 for clearing members, to $4,400 from $3,300 for members, and to $5,400 from $4,050 for customers. Margins for all other months will increase to $3,500 from $3,000 for clearing members, to $3,850 from $3,300 for members, and to $4,725 from $4,050 for customers. "

The confusion I had with, is that I didn't realize Nymex implied a special rate for November AND then again for December...so, if this is so..then our/my gripe is with the Nymex...if that is the case..I will of course just "eat it"...as every other futures broker should have the same margin reqs...so again...my bad...

Though...that still raises the question then ID's if IB will bring back the daytrading margin?...

 

[Zanatos]

Quote from chauncey1:

Sorry if i've been rude.

What i mean is that in any trading system a huge change on implied volatily with margin requirement should be taken in consideration as on this wild markets anything can happen.

I mean, if you take the 4k margin requirement as usual you're one wild move away (like the one we had, and it could get worst, who knows anyway) of having to change anything because of the change in volatility.

I understand that IB looks like an scary girl compared to other brokers in terms of margin req. but if anything huge happens (like an strike on middle-east or something) then i don't want to wonder what its going to happen with these broker offering kicking-ass margin req (i.e $500 on es). So, the high margin req. turns in a huge favor to trader instead of a pain in the ass like it looks right now.

Regards ,

Hey Chauncey...no worries..I understand what you are saying...and as I realized..the Nymex is the one that did consistently raise the margin twice for customers...which was Ib's rate increases...though...as to effecting trading...I use ultra-tight stops in my trading..so my account is never at risk...the only way I could lose serious money is if the Nymex and the IPE went down simultaneously, a major event happened; I held the wrong end of the trade AND I was exposed "one-sidedly" (is that a word?) to the move...

 

[ids]

Sorry, I cannot tell you when we return intraday margin for energy products right now. The decision is still pending.

 

[Zanatos]

Also..just to mention...for other oil traders, that now means that London is 16.3% cheaper per contract margin, and 30% better on commission at Ib rates currently...though, not nearly close in liquidiity...as of next month's contract...margins will be roughly same (Nymex/IPE)