Perhaps there still are some minor advantages to having a JBO - but they are minor (ie. my margin requirement just fell about 94 %) Should be fun............
How did your margin requirement fall 94%???? Please cite your example. You can't reduce your margins by 94% in any account. You are not blowing hot air are you?
Has anyone had any luck with IB's portfolio margin demo? It is very flakey (the market data is coming and going). Or maybe it's because there are 20000 people trying to use it now.
LOL - you're pretty funny: Here it is: In one of my accounts I mainly have Conversions/Reconversions. My current Reg-T margin requirement is over $350 K. With Portfolio Margin - I will be charged the minimum per option contract (about 600 options X 37.50) or $22,250 - no direction risk or volatility risk A Micro Example: Long 1,000 shares of IBM at $104 Short 10 APR $100 Calls Long 10 APR $100 Puts Under Reg-t - My Margin requirement would be $52,000. Under Portfolio Margin the requirement would be the minimum or $750 (20 contacts x $37.50) a decrease of almost 99%
I seriously doubt you are trading conversions and reversals off the floor for negative edge. And the con/rev is not a position per se. I'm not trying to be a dick, but I'm not buying this. LOL.
too funny.... I've been doing it for years - I track the entire options market but mainly only do conversions on the front month. In many cases (high priced stocks) I have not been able to compete as my ROE would be so low because of Reg-T - now a conversion in GOOG will cost me the same as a conversion in a $5 stock. But whatever...... It's nice to have doubters..... Later, gotta put the kids to bed.
So for pure intraday stock trading, based on the IB demo, looks like ur buying power goes to around 7x instead of the current 4x for taking individual stock positions. Also it does not take into account if you are say long QCOM and short QQQQ, no reduction in margin requirements for that type of hedge it seems.... i wonder why
I found this statement by IB curious. "Of course for some accounts with risky positions, Portfolio Margin can require more margin than under Reg T. Thatâs the point of Portfolio Margin, for margin requirements to more accurately reflect the actual risk of the positions in an account. It should be noted that for customers with highly concentrated accounts, Portfolio Margin may calculate higher margin requirements under Reg T. Portfolio Margin must assess proportionately larger margin for accounts whose positions are concentrated in a relatively small number of stocks."