If you're just daytrading futures is there a simple way to figure out how many contracts an account can trade? Something like, if the initial day margin is $4,000 then double or triple that and then divide by the account's cash value?
HEY.. I AM IN THE SAME CONUNDRUM AS FutureTrader10.. does Advantage Futures do options..? i only do options on the indexes. SO FAR STICKING WITH IB. i think I also see that the DAMN... Exposure fee has increased from Jan.. its making me real pissed. what i hate if.. there is no easy way to even deduct it from ur profits. so u have to pay it out of ur post tax profits.. damn them.. at my rate. i will be paying them 5k.. annually. i did try to switch to lightspeed and spoke to someone. i got all their forms. but did not complete the process. - one more is eoption.com... but they seem to be basic.. they did not even answer my question on portfolio margin. so all i need is .... low commissions for options. NO exposure fee CRAP Portfolio margin( IB has it with min 110K.. lighspeed Minimum 175K.. tradestation 250K. etc , etc. thats OK) ameritrade.. still is more expensive than IB for the volume I do...
I had Open E Cry (now become FuturesOnline) which had better commission than IB before. You can try them too.
I'm wondering if "everybody" is subjected to this exposure fee, or are only select accounts that are "blacklisted" or on the "naughty list" that get this fee?
IB's exposure fee has nothing to do with being "blacklisted" or being "naughty." If you are a customer of Interactive Brokers, you are a target of this IB-invented fee.
Don't wonder - read the details yourself. Basically it applies to situations with lots of short options positions, especially OOTM ones where large losses relative to the mark to market value can occur if a dramatic adverse move happens. https://www.interactivebrokers.com/en/index.php?f=14718
I regularly short options to collect premium. I've never been charged an "exposure fee" by IB. I don't over-leverage myself though.
I know about the rules, technically. They apply the 30% gap move loss on each position as an overnight scenario and every $76K 'exposure' means $1 exposure fee. But it's also non linear it seems. The incremental exposure leads to higher costs I think. However, I think people only get the warning if their overnight position had a stress test that yielded higher than $76K exposure on 30% gap against all positions. After that has occurred, the client seems to be 'blacklisted', get sent an email and given a week grace period before fees kick in. Then after that, they will forever have the fee once their 'exposure' goes over the $76K in the event of 30% gap even for one day.