IB TWS check margin

just21 · May 17, 2005

I select an option and check margin within TWS option trader. The amount exceeds the money in my account. Can I still transmit the order? I did not try it in case my whole account was liquidated! What happens in this situation?

thanks

just21 · May 17, 2005

bump, everybody at IB gone home?

Xenia · May 17, 2005

All that you will get is a popup window ("Order rejected")

with some numbers (with respect to margin requirements).

Greenfuji · May 18, 2005

I find the amount shown by Check Margin is not accurate at all. In you account page take a look at your excess liquidity after you place a trade and use that as an indicator. It is more accurate but still nothing to rely on.

ktm · May 18, 2005

"Check margin" is often accurate, although it depends on how much you have on at the time. I have never seen a case where the check margin feature did not provide the worst case scenario. When it is wrong, the actual margin required was more favorable than "check margin" indicated.

just21 · May 18, 2005

The prices they use to calculate the margin from are often wrong. The ES option price they used yesterday was way above the bid/ask in the market.

Trajan · May 18, 2005

Quote from just21:

I select an option and check margin within TWS option trader. The amount exceeds the money in my account. Can I still transmit the order? I did not try it in case my whole account was liquidated! What happens in this situation?

thanks

I would be screwed if my position got liquidated every time I did this. I pushed my margin to the max regularly.

osho67 · May 18, 2005

In overnight margin there are two lines 1. Available funds and 2. Excess liquidity. When available funds are negative I close some position to bring it back to positive., even though excess liquidity is positive.

Is this the right approach or should I only worry about line two and maintain it positive?Help much appreciated. Thanks

mance · May 18, 2005

Quote from Trajan:

I would be screwed if my position got liquidated every time I did this. I pushed my margin to the max regularly.

Hi Trajan!

Does this mean that you can open a short position even if you don't have sufficient margin?
Do you keep these short positions over night or do you close them during the same day?
For instance my Eurex broker won't let me
open a short option position if I can't meet the margin requirements..