Margins on VIX futures spreads are too high since Brexit account migration.

[kroon1ke]

I've been trading VIX futures on IB for several years now and since Brexit account migration my margins on VIX futures spreads increased a lot. From their IB support chat I understood that portfolio margin for IBCE (Interactive Brokers Central Europe) clients is gone, but their new risk/margins system should be similar to pre-Brexit portfolio margin, but it seems that IBCE VIX traders got screwed?

Currently I can short one April VIX future and my initial margin requirement is $20 702, which is high but might be justifiable. However, if I short one April future and buy one May future (as one instrument on CFE) my margin for this spread is $27 579! And this spread position is a lot less risky than naked short future position.

Could someone please help me to figure out whether my margin increase is connected to account migration from IBUK to IBCE or it is just their "regular" and temporary margin increase. Unfortunately, IBs customer support was unhelpful.

 

[maxinger]

Margin requirement for
NQ is $$17K
dax is 45K euro
Bitcoin is $138K
....

it definitely is high.
I think the brokers are expecting the very big bubble to burst soon.

 

[Millionaire]

Even AMP Futures who have ES intraday margin at $400.

Want $13,000 for VIX futures even intraday.

 

[destriero]

I've been trading VIX futures on IB for several years now and since Brexit account migration my margins on VIX futures spreads increased a lot. From their IB support chat I understood that portfolio margin for IBCE (Interactive Brokers Central Europe) clients is gone, but their new risk/margins system should be similar to pre-Brexit portfolio margin, but it seems that IBCE VIX traders got screwed?

Currently I can short one April VIX future and my initial margin requirement is $20 702, which is high but might be justifiable. However, if I short one April future and buy one May future (as one instrument on CFE) my margin for this spread is $27 579! And this spread position is a lot less risky than naked short future position.

Could someone please help me to figure out whether my margin increase is connected to account migration from IBUK to IBCE or it is just their "regular" and temporary margin increase. Unfortunately, IBs customer support was unhelpful.

VX futures are margined under SPAN, not IB's PM, but obviously IB has gone to shit in recent years. Switches were approaching 40:1 when I was in them.

 

[rallymode]

I've been trading VIX futures on IB for several years now and since Brexit account migration my margins on VIX futures spreads increased a lot. From their IB support chat I understood that portfolio margin for IBCE (Interactive Brokers Central Europe) clients is gone, but their new risk/margins system should be similar to pre-Brexit portfolio margin, but it seems that IBCE VIX traders got screwed?

Currently I can short one April VIX future and my initial margin requirement is $20 702, which is high but might be justifiable. However, if I short one April future and buy one May future (as one instrument on CFE) my margin for this spread is $27 579! And this spread position is a lot less risky than naked short future position.

Could someone please help me to figure out whether my margin increase is connected to account migration from IBUK to IBCE or it is just their "regular" and temporary margin increase. Unfortunately, IBs customer support was unhelpful.

IB's margins on VX outrights and spreads have been very high since sometime around 2013. They use their own formula and not the exchange margin tables. Not only are they high but they will often get increased overnight based purely on IB's discretion regardless of whether exchange margins have changed or not. Risk rolling down the curve seems to happen almost daily as opposed to at each expiration. Simply absurd. IB is not the place for any serious VX traders. Plenty of brokers out there who honor exchange margin on VX products and won't auto liquidate.

 

[FSU]

Would the margin be less if you bought a deep in the money April VIX put vs shorting the future? Or do the whole combo in options?

 

[VixTraderdf]

IB's margins on VX outrights and spreads have been very high since sometime around 2013. They use their own formula and not the exchange margin tables. Not only are they high but they will often get increased overnight based purely on IB's discretion regardless of whether exchange margins have changed or not. Risk rolling down the curve seems to happen almost daily as opposed to at each expiration. Simply absurd. IB is not the place for any serious VX traders. Plenty of brokers out there who honor exchange margin on VX products and won't auto liquidate.

Who are the good brokers for VX traders?

 

[rallymode]

Who are the good brokers for VX traders?

I am with RJO and never had an issue that wasn't tended to immediately. Though their commissions are on the higher side unless you trade volume. Wedbush is also pretty good if you are looking for low commissions. Both follow exchange margins and do proper margin calls should your margin become insufficient.