I am a Canadian trader that recently opened an options account with IB. I seems that IB requires that Canadian traders margin on both sides of a condor spread. Although I like IBâs commission structure, I find the margin requirements for condors monopolizes my margin. Is anyone else having this problem. Can someone recommend a good broker that allows Canadian traders to trade condors without having to put up double the margin. Thanks in advance.
You should ask IB to look into this for you. I doubt they'd make you fork up margin requirements for both sides of a condor spread.
It's true, they margin you on both sides. But they don't margin you on both sides of a strangle/straddle... That and they wouldn't let us participate in the IPO auction... My only 2 complaints about IB... - mnx
I have already done the leg work on this as I had the same problem. It's a legal issue. Canadian brokers MUST treat it as 2 separate spreads. HOWEVER, procedures are in the final stages and that soon (I don't know how soon) this may change. I have contacted the IDA, OSC etc. Contact Bruce Grossman at 416-943-5782 at the IDA. He is very kind and will happily answer your questions. He is up-to date on this and it's on its final stages. There are other option combos also being considered. If you want to have a look at the proposal, let him know OR I could send you a copy. Torontoman
About time. Ridiculous how backwards the Canadian industry is on this issue. About the IBIPO, I'm late to the party but just because we are Canucks we can't get in? That is a serious problem.
Yeah I actually put a bid in on the first day and an hour or so later think link to IBIPO in account management disappeared... I went to the IBIPO webpage after that and it said that the IPO Auction was not open to Canadian residents. I recieved an e-mail later that day saying my bid was canceled... slightly annoying... - mnx
Coon,I too am a Canadian trader,I ended up opening an account at Think or Swim in order to trade Iron Condor's, mind you I had to also open an LLC. Just a word of caution if I may add this for you. Since October the condor's ten handles out have been breached both long and short so the risk of using this strategy may be too high at this time with the volatility. I have found it wiser to reduce risk and put my money up front so to speak by using a debit vertical instead of credit verticals. Best of luck to you.
Yes I reside in Ontario. Was introduced to TOS by a relative residing in Alberta,he has been trading Iron Condors for the past three years with TOS. He put me in touch with a woman in the U.S that set the LLC up for me. I have recently heard that they may not be accepting Canadians any longer. Erik Epp of Wise Options is the main contact for the Canucks. Check into the website "Wise Options" also try Erik Epp site. Hope this helps....