IBKR the best imo.

[wxytrader]

They're just churning traders now. There's always another sucker waiting in line. So yeah, let's hike the margins at random times whenever we feel like it, especially if there's any volatility whatsoever because why not. It's not like traders need volatility to make any profit, right?

Sounds like you're oversizing. Its normal practice to increase margin requirements when volatility increases, that's kind of the whole point.

 

[poopy]

Sounds like you're oversizing. Its normal practice to increase margin requirements when volatility increases, that's kind of the whole point.

oml. We're not talking about increasing the degen-intraday req on futures. We're talking arbitrarily increasing debit req on defined risk option positions. Literally requiring more than the risk on the spread and > RegT on others.

 

[wxytrader]

oml. We're not talking about increasing the degen-intraday req on futures. We're talking arbitrarily increasing debit req on defined risk option positions. Literally requiring more than the risk on the spread and > RegT on others.

Who are you D's cousin? Yes I'm talking about margin requirement. It will increase with volatility. There are no defined risk trades in their view. Brokers will measure margin risk based on the instruments themselves, not the position. I had the same conversation with my broker when they restricted some instruments entirely because of being high volatility even though I had the cash to cover the assignment.

 

[d08]

Sounds like you're oversizing. Its normal practice to increase margin requirements when volatility increases, that's kind of the whole point.

Only been with IB for almost 20 years now. What do I know, right?

 

[poopy]

Who are you D's cousin? Yes I'm talking about margin requirement. It will increase with volatility. There are no defined risk trades in their view. Brokers will measure margin risk based on the instruments themselves, not the position. I had the same conversation with my broker when they restricted some instruments entirely because of being high volatility even though I had the cash to cover the assignment.

They don't increase margin req without a notice on the platform.

I am referring to a 10-wide vertical where they would *require* the full $1,000 per spread regardless of what the debit is on the spread. I've seen it first hand. No, it's not an increase in initial or maintenance, it's even dumber.

I was on my honeymoon and left home with nothing but a box at edge. I got a notice that some of it was blown out at market. They did cover the loss, and sure it was an error, but these stories are rampant.

 

[poopy]

Who are you D's cousin? Yes I'm talking about margin requirement. It will increase with volatility. There are no defined risk trades in their view. Brokers will measure margin risk based on the instruments themselves, not the position. I had the same conversation with my broker when they restricted some instruments entirely because of being high volatility even though I had the cash to cover the assignment.

Yeah, but you're a moron. There are no defined risk (trades)? Welcome to options! All longs on this planet are defined risk.

 

[poopy]

Margin will increase with volatility unless you are new to options you should be aware of this. You can get a list of margin loan to value for certain instruments and they will note that they are subject to change without notice.

None of this is true unless you are PM/RBH. You have zero first-hand knowledge of this.

There should never be a change in haircut under Reg-T option positions.

 

[wxytrader]

Yeah, but you're a moron. There are no defined risk (trades)? Welcome to options! All longs on this planet are defined risk.

Not as far as margin goes with options trading, you can't even have a cash secured put technically. There was just a topic where a position was closed on a defined risk spread that was cash settled. Even D mentioned that sometimes your (Reg-T) margin can exceed the actual spread risk.

 

[Businessman]

Sounds like you're oversizing. Its normal practice to increase margin requirements when volatility increases, that's kind of the whole point.

IB had (probably still have) this hard rule that if the VIX goes above 30 they remove day trading margin on futures.

But they didn't enable back it unless the VIX falls all the way back below 20 (not 30, but 20)

Stupidest rule ever as it could be months while the vix stays slightly above 20.

But just before oil went negative they gave CL traders almost infinite margin by mistake because they did not think it go negative when it was trading for 1 dollar. Traders could buy 1000 CL contracts with IB with only a few thousands in the account.

 

[poopy]

Not as far as margin goes with options trading, you can't even have a cash secured put technically. There was just a topic where a position was closed on a defined risk spread that was cash settled. Even D mentioned that sometimes your margin req can exceed the actual spread risk.

You're referring to expiration. That's not the issue. We're not talking last trading day and allowing something to assign on a calendar. Now wtf does a cash-secured put have to do with this conversation? Oh yeah, IBKR will add 10%.