Iron Condor on Interactive Brokers

Quote from nagaraj_h:

But the maximum loss is only $2000 - total credit received (when the underlying is above 720), since the put credit spread expires worthless. If the underlying is below 590, the call credit spread expires worthless and the loss is $1000 - total credit received. There is no reason to reduce BP for each side of the trade. It doesn't make sense to lock more capital than is mathematically necessary. It reduces the number of contracts that can be entered.
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BP != Margin...

As I look at my account my BP is based on leverage and IB gives you that so that you can temporarily trade on leverage.

However, margin is not buying power. Margin is what locks up your capital. And on that IB does not add the numbers. IB does this intelligently and it depends on whether you have RegT margin, or Portfolio margin.

On top of that IB has initial margin, which is the ability to enter a trade. And maintenance which is your ability to keep the trade.

Right now my Initial Margin is creeping up, but my maintenance is dropping. Why? It is done that way so that you can't enter into any crazy short option position.

If other brokerages equate BP to Margin then they are being more conservative than IB.
 
I'm an IB user and I'm wondering if I can do that:
I have :
6 X NDX Bear call spread: +2625 -2650 expiry December 2011
with 15000 usd margin
I want to add :
6 X NDX Bull put spread: +1800 -1775 expiry December 2011
with less than 15000 usd margin
Do my final total margin will be 15000 usd as the position is recognized as Iron condor?
Thanks
 
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