Interactive Brokers Margin Requirements for Options Spreads and Restrictive Quantity Limits...

Con1991 said:
That screenshot is for the November 22nd 3000/3100 SPX strikes. So only a few days out. As you can see the margin required here is only $300, a far cry from what IB demands as collateral.
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Because it's $10,000 -9,700 (Limit price of 97) thus $300..
 
Con1991 said:
That screenshot is for the November 22nd 3000/3100 SPX strikes. So only a few days out. As you can see the margin required here is only $300, a far cry from what IB demands as collateral.
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they will also want the 9700 as collateral.
 
newwurldmn said:
they will also want the 9700 as collateral.
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You're right. However I can trade more of these on other brokers, as they allow the trade to go through. So ten of these contracts with TD etc will be 3k. Whereas with IB it's 100k. Nonsensical.
 
Con1991 said:
I have recently begun trading with IB using options trades such as Vertical spreads, Calendar spreads, Butterfly spreads etc. I have noticed that unlike other brokers, IB does not apply the credit received upon opening for example, a credit spread. Therefore full margin is required.

Example on SPX, 3000/3100 spread where difference in strikes is 100 wide, 10k is required on IB. On TD Ameritrade and any other broker, the margin required is difference in strikes MINUS credit received. This is highly frustrating and making me want to trade elsewhere.

Any point I must make, is that when I try to open more than a certain number of options contracts with IB, I often receive an order rejection message varying from 'Equity with loan value must not exceed net liquidating value times 30' to 'Your order is too large for us to accept, please submit a smaller order not exceeding xyz'. Apparently they state this is to do with regulatory requirements, however other brokers do not have such restrictions.

Any insight from fellow IB traders would be appreciated. I really wish I could open an account with TD, now Charles Schwab. However I live in Ireland so I cannot.
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Moot. IBKR will not allow you to trade 500K contracts per ticket.
 
Con1991 said:
I have recently begun trading with IB using options trades such as Vertical spreads, Calendar spreads, Butterfly spreads etc. I have noticed that unlike other brokers, IB does not apply the credit received upon opening for example, a credit spread. Therefore full margin is required.

Example on SPX, 3000/3100 spread where difference in strikes is 100 wide, 10k is required on IB. On TD Ameritrade and any other broker, the margin required is difference in strikes MINUS credit received. This is highly frustrating and making me want to trade elsewhere.
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Sorry, I'm late to this discussion and haven't read all the replies, but just this:
Maybe "Spread trading permission" is not enabled in your account; just ask the support.
One normally needs to apply for this.
Check https://ibkrguides.com/clientportal/optionstradingpermissions.htm
 
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