I agree it seems too far, but I've come across some articles that suggest it's not entirely impossible. I can't find the one I'm thinking of now,...
My mistake, I was looking at the preview for a combo order, but didn't realize I had put in 1 share instead of 100 (the margin requirement did...
First, the customary caveat that I'm not a lawyer or CPA. Also, my impression is that enforcement of straddle rules is mainly targeted at...
There are rules about how straddles are taxed that are meant to address such techniques. Basically, if you have offsetting positions and sell one...
Exactly.
Selling a box does not increase excess liquidity. The OP was not saying that it did. He was using it to increase cash, so that instead of paying...
I don't see it specifically documented anywhere that ELV includes American options in a PM account, but it must be the case. It's not an error in...
Do you have a PM account? I've seen you post the definition of ELV a dozen times saying it doesn't include American options. I understand why by...
It seems that ELV has a different (seemingly undocumented) meaning in a portfolio margin account. On this page, it says the margin for shorting a...
In that case I think your numbers make sense. The "Securities Gross Position Value" doesn't include futures or FOPs. The actual leverage rule is...
I've always had Leverage = Securities Gross Position Value / Net Liquidation Value. Don't know how leverage could be zero if you're not 100%...
It's completely separate from the normal margin calculation. There's "Securities Gross Position Value" under the "Balances" section of the...
There's also a 50x limit at which they start liquidating. They actually are documented here under "Time of Trade Position Leverage Check" and...
It used to be "Collateralized Debt Obligations: Structures and Analysis." I don't know if there's anything more recent, but a good chunk of it...
It was on a single-name, I think a conversion. Could have changed or might be specific to SPX.
The difference between ELV and NVL has always confused me. I know the definition you give is what's on IB's website, but it's not what I see in...
It won't help to avoid a margin call. A margin call occurs when your margin exceeds your net value (Equity with Loan Value). Selling a box...
Certainly if your trading strategy doesn't leave you with excess cash, it's pointless to buy a box spread. Would you agree with the following...
I'm not familiar with margin for professional traders, but this isn't the case at IB. With a PM account, cash is almost irrelevant, unless you're...
How much margin did they want, and was this a portfolio margin account? I ask because near expiry I'll occasionally end up with large offsetting...
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