Interactive brokers raising vix margin
- Thread starter just21
- Start date
Robert Morse
Sponsor
Interactive brokers raising vix margin?
For reg-T and/or PM? What what to what? Do you have the email that IB sent out?
For reg-T and/or PM? What what to what? Do you have the email that IB sent out?
The primary content of the email/message is quoted and reproduced in that zerohedge story. IB issued it early Fri evening.
According to their margin reports, my VIX/VXX trades are margined using portfolio margin, but I'm with IB HK which doesn't use the US Reg-T/PM regime.
According to their margin reports, my VIX/VXX trades are margined using portfolio margin, but I'm with IB HK which doesn't use the US Reg-T/PM regime.
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Worry warts.
Nothing to see.
All is well
Nothing to see.
All is well
IB seems concerned about an increase in volatility in the USA. But apparently not in Europe: I did not get a message that the margin on V2TX (the "European VIX") futures is being increased. One would expect that if volatility in the USA increases, the volatility in Europe would also increase.
Are V2TX levels at similar extreme percentiles? But I think this is more a case of IBKR's concern for the extent its customer base is short VIX (especially the ETPs) . The risk on their books is far greater than V2TX volumes pose, I'd guess.
Following in the wake of their significant change to IV stress-test ratios several months ago (https://www.elitetrader.com/et/threads/ibkr-tightening-margin.307327/) , selling vol with IBKR is becoming increasingly unattractive.
I wouldn't criticise them for protecting their business and clients from (at minimum) a liquidity crisis, though some of the margin requirements I've seen demanded in recent times are hard to comprehend.
Following in the wake of their significant change to IV stress-test ratios several months ago (https://www.elitetrader.com/et/threads/ibkr-tightening-margin.307327/) , selling vol with IBKR is becoming increasingly unattractive.
I wouldn't criticise them for protecting their business and clients from (at minimum) a liquidity crisis, though some of the margin requirements I've seen demanded in recent times are hard to comprehend.
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Robert Morse
Sponsor
We can offer PMA for account in Hong Kong with custody at Wedbush Securities. On VIX products, we are more restrictive than the OCC. For risk, we shock -25%/+200%, loss no more than 1X your equity. But we do offer PMA with accounts starting at $175,000 USD.
Robert Morse
Sponsor
I see it now, I did not scroll down to the bottom.
When I read the notice from IB I thought the higher margins would go in effect on or after August 19th. That seemed like a reasonable period of time to close out some positions.
However, when I logged in TWS today (Aug 6) I went from +$117,000 in available funds to -$349,065. There has been a huge increase in margin and it effective immediately.
However, when I logged in TWS today (Aug 6) I went from +$117,000 in available funds to -$349,065. There has been a huge increase in margin and it effective immediately.
Hell, yes - that prompted me to log in to TWS. Shows my Initial Margin has increased by 23% and Available Funds decreased 26% from the Daily Report of Sat 6th. And that's on a book which is neither net short options nor holds short or inverse VIX ETPs.
I was running under 50% margin ratio and majority of my positions expire in 10 days so no big deal. However, anticipate there'll be a fair amount of position trimming by IB VIX players tomorrow.
I was running under 50% margin ratio and majority of my positions expire in 10 days so no big deal. However, anticipate there'll be a fair amount of position trimming by IB VIX players tomorrow.