Why does Interactive Brokers impose such restrictive limits for options trading?

[Overnight]

A screen grab from the CBOE website, product specifications for SPX options.

Well, you got me there. I guess you can call IB and complain to them that they are not following the CBOE guidelines.

 

[Con1991]

Well, you got me there. I guess you can call IB and complain to them that they are not following the CBOE guidelines.

Not at all. Your input is valuable and insightful. I guess it's a case that not many retail traders are trading such sizes, and many more would not in any event.

 

[destriero]

Not at all. Your input is valuable and insightful. I guess it's a case that not many retail traders are trading such sizes, and many more would not in any event.

durrrr

 

[destriero]

There is no pre-defined pool of option contracts. Both the buyer and seller can be opening the position, therefore increasing OI. You cannot corner the mkt, as it were.

 

[newwurldmn]

There is no pre-defined pool of option contracts. Both the buyer and seller can be opening the position, therefore increasing OI. You cannot corner the mkt, as it were.

the world is littered with traders who have tried (mentioned in the chat).

 

[SunTrader]

What is the point of "sim"-ing a trade you don't have the funds to execute live?

 

[newwurldmn]

Are you able to read basic material? I am well aware there are position limits, and my hypothetical order in the screenshot conforms to said limits, since there are NO position limits on European index options. So why don't you take your b******* and stick it somewhere I don't have to entertain it...

No broker would let you trade 200k options in real life. I don’t think a bank desk would even facilitate it for Warren buffet.

 

[destriero]

OP, buy 1K ATM GME calls at mkt and report back with the pre and post vol-line on the contract purchased. Thanks.

 

[destriero]

the world is littered with traders who have tried (mentioned in the chat).

Yeah, F that softbank guy.

 

[mervyn]

A screen grab from the CBOE website, product specifications for SPX options.

You read this wrong. No position limited is related to the positions that exist. If you are not in a position, it is moot.

No one would ever trade 80 billion standardized contracts with you or goldman or morgan. You have to go into swap market (aka cfd), asked bill huang.