Looking for portfolio margin broker

dave_s · Dec 27, 2013

I am looking for a portfolio margin broker that has reasonable stress tests for OTM short options and credit spreads.

Apex Clearing appears to have ramped up their margin requirements for Portfolio Margin again.

The Interactive Brokers Auto Liquidation process can be deadly in
downdrafts.

Thus, looking for an alternative.

gkishot · Dec 27, 2013

Try TD Ameritrade.

dave_s · Dec 27, 2013

Td Ameritrade (TOS) requires $100K per 100 contracts net short.

cdcaveman · Dec 27, 2013

Quote from dave_s:

I am looking for a portfolio margin broker that has reasonable stress tests for OTM short options and credit spreads.

Apex Clearing appears to have ramped up their margin requirements for Portfolio Margin again.

The Interactive Brokers Auto Liquidation process can be deadly in
downdrafts.

Thus, looking for an alternative.

Short gamma, is a bad play.. Ask any experienced trader

Dael · Dec 27, 2013

Quote from dave_s:
The Interactive Brokers Auto Liquidation process can be deadly in
downdrafts.

Can you share examples of Auto Liq? I've seen IB educational video on margin calculations, and so I've got the idea of 'cushion' should be positive. Does cushion mean buying power?

dave_s · Dec 28, 2013

Quote from cdcaveman:

Short gamma, is a bad play.. Ask any experienced trader

I am well aware of spike / black swan event risk and the impact on a portfolio. Appropriate hedges are in place.

dave_s · Dec 28, 2013

Quote from Dael:

Can you share examples of Auto Liq? I've seen IB educational video on margin calculations, and so I've got the idea of 'cushion' should be positive. Does cushion mean buying power?

https://www.google.com/#q=interactive+brokers+auto+liquidation

Cushion can change significantly and you have no knowledge until they liquidate your account.

Doobs789 · Dec 28, 2013

Quote from cdcaveman:

Short gamma, is a bad play.. Ask any experienced trader

So does that make long gamma a good play?

newwurldmn · Dec 28, 2013

Quote from cdcaveman:

Short gamma, is a bad play.. Ask any experienced trader

Nothing wrong with short gamma if you are compensated enough for it.

Nothing wrong with long gamma if you buy it cheap enough.

WhenVolsFly · Dec 28, 2013

Quote from cdcaveman:

Short gamma, is a bad play.. Ask any experienced trader

I would guess most experienced traders would say that they've been short gamma and long gamma and whether or not it's a good trade depends on market conditions and risk management...