Recommended broker for mixed futures + options on futures trading

November 8th, 2021, 11:21 AM

Hi,

I'm looking for a broker that would allow me to execute my mixed trading strategy that involves options selling and trading futures to hedge that options on the same account

I've done some research and found that:
- most brokers does not allow options selling at all (no naked, no spreads)
- some brokers allow selling, but account margin is separate for options and futures trading
- some brokers allow selling, but they have unfriendly margin policy (ie if I sell both Call and Put, only one of that options can expire in the money and involves some risk but they still want full margin for Call, separate for Put leg and separate full margin for my futures hedges so 3x full exchange margin for a one lot trade

I tried with IB, they properly calculate options margins but still futures trading requires full exchange margin

Any ideas?

November 8th, 2021, 12:01 PM

Have you checked Tradestation? They have futures and options on futures. Don't know about the margin calculation...

Sent using the NexusFi mobile app

November 8th, 2021, 12:11 PM

thesimpletrader

Have you checked Tradestation? They have futures and options on futures. Don't know about the margin calculation...

Sent using the NexusFi mobile app

I forgot to mention that I'm not US citizen so I can't use brokers like Tradestation or TD that are only available to US clients

November 8th, 2021, 12:18 PM

@matteo83

Your question also belongs to your actual money you can place in any trading account and the security you can give to the broker house, in case it comes to any margin call.

By the way: How would your three leg strategies with a future leg and two option leg look on any matrix, at least at the begin of implementing it?

Symple

November 8th, 2021, 01:02 PM

Symple

@matteo83

Your question also belongs to your actual money you can place in any trading account and the security you can give to the broker house, in case it comes to any margin call.

By the way: How would your three leg strategies with a future leg and two option leg look on any matrix, at least at the begin of implementing it?

Symple

I expect that maximum risk for short Call + short put + any direction of futures trade can be covered by 2x futures contract margin, not 3x.

Additionally I don't get why I can get $1500 margin for my futures trades with other brokers but brokers that allow options trading want $17k of margin per contract even if all of the options that I want to trade expire when futures market is still open

Recommended broker for mixed futures + options on futures trading

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Recommended broker for mixed futures + options on futures trading