Interactive brokers cash requirements - futures io
futures io

Interactive brokers cash requirements

Discussion in Brokers

      Top Posters
    1. looks_one shanemcdonald28 with 2 posts (1 thanks)
    2. looks_two Quick Summary with 1 posts (0 thanks)
    3. looks_3 randomengineer with 1 posts (0 thanks)
    4. looks_4 Bookworm with 1 posts (2 thanks)
    1. trending_up 1,459 views
    2. thumb_up 4 thanks given
    3. group 2 followers
    1. forum 5 posts
    2. attach_file 0 attachments

Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

Search this Thread

Interactive brokers cash requirements

(login for full post details)
  #1 (permalink)
Chicago, IL USA
Posts: 10 since Apr 2015
Thanks: 6 given, 0 received

I just opened up an IB IRA account so I could buy puts on the ten-year treasury. For some crazy reason, once the account was finally able to place a trade, my ~$2,000 purchase order was rejected because it said I must have ~$20,000 in cash on hand.

When I called, IB insisted that this was an exchange requirement, and went into all kinds of explanation about how there is unlimited risk in buying a put on a future because of performance bond requirements. However, the risk department at the CME told me that they must be confusing the risk of selling contracts with that of buying contracts. That's what I had thought as well.

It's also clear as day in the CME options on futures brochure, which says no performance-bond requirements for buying puts. I confronted IB with all of this, and their attitude was basically--well if it's not an exchange rule like we claimed previously--too bad, that's our policy. I asked how they possibly expect to keep futures options customers with this policy, and they had no answer.

So, what gives? Is this new for them? Are they really this clueless?

Apparently I can't reply to my own thread because of permissions for this website, so I'm answering here:

Shane: From what I understand, if I buy the option to open, I'm the one who asks the seller to exercise the option, causing the assignment, not the other way around. Or am I misunderstanding something?

re: the PM I got:

i960 - Thu, 09 Apr 2015 19:29:35 -0400

What they're saying makes zero sense as long options never require performance bond.

Yes, I know. The exchange knows it. I think even they know it from follow-up calls, but they don't appear to care. Two different people at the risk department in the CME suspected the same as I did--that perhaps IB mixed up buying options with selling them? I just don't understand how a major brokerage could be so utterly clueless to do that.

Unless it's subversive: I don't understand why anyone would buy options using IB with a cash on hand requirement like this, assuming other firms don't do the same. The only reason I could think of is that maybe it's in order to drive away customers. A reason they might want to do this in an underhanded fashion is that reportedly they disabling futures options trading without notice about a month ago for an entire week. I can't imagine they didn't put themselves at tremendous financial liability for people who couldn't trade and weren't given time to get out of IB.

I wish I could file an SEC complaint, but the exchange said brokerages can add whatever restrictions they want to a trade, however irrational, as long as they meet the exchanges' minimum restrictions.

Reply With Quote

Can you help answer these questions
from other members on futures io?
Is there a way to rename an existing trade?
1-min Intrabar indicator
MBoxWave for Sierra Chart for sale 50%
Platforms and Indicators
Thinkorswim MACD Thinkscript
Weather services for trading NG
Trading Reviews and Vendors
Best Threads (Most Thanked)
in the last 7 days on futures io
How much do you know about Bitcoin?
128 thanks
I finally blew up an account
52 thanks
FIO Journal Challenge - April 2021 w/Jigsaw Trading
38 thanks
Big Mike in Ecuador
27 thanks
The tiyfTradePlanFactory indicator
25 thanks
(login for full post details)
  #3 (permalink)
new york
Posts: 355 since Mar 2012
Thanks: 665 given, 580 received

If you buy a put, dont you have the risk of being assigned ?
Then you have to be able to buy the actual ten year ?

I may be wrong, but is this a possibility ?

Reply With Quote
The following user says Thank You to shanemcdonald28 for this post:
(login for full post details)
  #4 (permalink)
Legendary Market Wizard
Houston, TX
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
Posts: 4,096 since Dec 2013
Thanks: 3,405 given, 8,116 received

Wonder if this is all related to this...

Reply With Quote
The following user says Thank You to SMCJB for this post:
(login for full post details)
  #5 (permalink)
Long Island, NY
Experience: Advanced
Platform: TOS & Tastyworks
Broker: TD Ameritrade
Trading: Equities, index options and futures options
Bookworm's Avatar
Posts: 175 since Apr 2010
Thanks: 65 given, 166 received

shanemcdonald28 View Post
If you buy a put, dont you have the risk of being assigned ?
Then you have to be able to buy the actual ten year ?

I may be wrong, but is this a possibility ?

If you buy a put (or call) then you are long the option and YOU have the choice to exercise it. If you sell the option short then you carry the risk of being assigned.

Reply With Quote
The following 2 users say Thank You to Bookworm for this post:
(login for full post details)
  #6 (permalink)
new york
Posts: 355 since Mar 2012
Thanks: 665 given, 580 received


ok, then that is not it.



Reply With Quote

futures io Trading Community Trading Reviews and Vendors Brokers > Interactive brokers cash requirements

Last Updated on April 11, 2015

Upcoming Webinars and Events

NinjaTrader Indicator Challenge!


NEW BlackBird Features + FOREX Support w/Jeremy Tang @ SharkIndicators

Elite only

Our 12-year anniversary w/ $$,$$$ prizes (check soon)


Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada),
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts