Interactive brokers raising vix margin

toonerdy said:
Experimentally, it appears to me that Interactive Brokers's new volatility exchange traded product margining at least sometimes requires much more margin for a protective call (short underlying + long call) on a long volatility ETP than a long put with the same expiration and strike, even though the exposure is basically the same.

I am a bit surprised by this because IB normally explicitly recognizes a protective call combination and offers pretty good margin for it.
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Toonerdy--- I have a similar experience. I am short a number of VXV futures and long 10 VIX 16 calls per future. The maximum loss and therefore margin should be $5k per future. I have excess liquidity of 3 times what the margin SHOULD be-- and yet just moments ago I got an IB general notice that I can't add any volatility trades. I may be looking for a new broker---- suggestions?
 
I just received the same notice that I can't add any volatility trades even though I meet the new margin requirements.

It feels like IB has shut me out completely.

If you want to short volatility where do you go from here?
 
I did not receive a notice yet, but I am seeing all sorts of weird activity with margin. They are charging crazy initial margin to own vix puts and options on vix etps and margin requirements for shorting vix etps is increasing daily, I think vxx is @ 200% initial now. I am considering tradier, eoption, lightspeed and tdamertitrade. If anyone has any suggestions about these brokers or any other good option for trading everything volatility related, please let me know.
 
Are all brokerages increasing VIX product margins to 100% or is it just IB? Getting a bit annoying since this will stay in effect as long as VIX is ~10.
 
I got same warning that no margin increased vix products trades even I have substantial more fund available. IB is suckered and they are really trade against client. We should get together to fight for ourselves again such unprofessional rule.
 
IBKR now charges absurd margins on VIX calendar spreads. According to CBOE the margins for tier 1 spreads (M1, M2) are $2200/$2000 and for tier 2 spreads ( M2, M3) $770/$700. In comparison IB charges $4860/$3888 for (M1,M2) and $10086/$8069 for (M2, M3). This makes no sense and definitely means I need to look for another broker...after 10 years :(
 
Jack wong said:
Pease share a good broker. Look like tradestation might be a good one. Anybody has a Comment? Thanks.
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I have done and still trade futures spreads as well as selling options once in a while. Mostly spreads. I have traded the VIX only a few times but my broker at Cannon Trading and they charge exchange minimum margins.
 
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