Portfolio margin | Reviews of Brokers and Data Feeds

futures.io - futures trading strategies, market news, trading charts and platforms

Reviews of Brokers and Data Feeds

Review and discuss futures brokers, their requirements and features, or ask questions about brokers and data feeds


Portfolio margin

  #7 (permalink)

Market Wizard
Linz Austria
Trading Experience: Advanced
Platform: Zaner360, TWS, Vantage
Broker/Data: DeCarley, IAB, RJO
Favorite Futures: Commodities
Posts: 1,546 since Nov 2014
Thanks: 1,917 given, 2,048 received

alchemist74 View Post
OK i understood that but must be math formula and logic behind this margin change.

Thanks for your help

I assume you have this problem with IB.

It is my experience with IB that they have unreasonably high margins for short OTM options, and that it is impossible to predict these margins. Sometimes margin for short OTM options is higher than margin for outright futures.

IB generally does not like traders to sell naked OTM options. The reason might be that they want to close positions automatically using a market order instead of a margin call. For OTM options, a market order for buying back a short option usually ends up with an unreasonably high price.

I recommend to sell naked OTM options with another broker.

Best regards, Myrrdin

Reply With Quote
The following user says Thank You to myrrdin for this post: