Does anyone know in detail how do the Brokers compute PORTFOLIO MARGIN?

Discussion in 'Options' started by tabasco mark, Nov 29, 2011.

  1. I know they use the TIMS in general but it is almost impossible
    to understand and expect the Fluctuations of the Margin .
    Is there someone who understands the Black Box ?

    thanks

    :)
     
  2. rmorse

    rmorse ET Sponsor

    If you're looking for a general rule of thumb, for equity positions, look at you potential loss from a 15% move up or down, and that will be close to your haircut. Feel free to call me if you like, I'll try to help.

    Bob
     
  3. daveyc

    daveyc

    may i ask, what options strategy are you considering for use in your portfolio margined acct?

    i know i don't have to tell you, be very careful with this, its nice to have but understand the power of this leverage you intend to use, it works both ways. understand that a screw up can take you out of the game. good luck.
     
  4. Thanks ,
    it's like driving a sports car with out
    having control on the steering wheel .
    this rule I know but the TIMS formula or
    whatever they use is more complex than that ..
     
  5. Options12

    Options12 Guest

  6. daveyc

    daveyc

    consider also options on futures to get that sort of leverage with a standard margin acct.
     
  7. PM factors a ticker-concentration. Bitching/whining about it won't help.
     
  8. Options12

    Options12 Guest

    What is your firm's minimum requirement for PM accounts? I know IB requires 100K. Does anyone know what other firms (eTrade, TD, etc) require?
     
  9. daveyc

    daveyc

    tos by td is 125k
     
  10. rmorse

    rmorse ET Sponsor

    The SEC regulation for CPM is $100K. Our minimum is higher. It does not make sense to open an account near $100K and risk conversion to REG-T one morning from a small account draw down. Give me a call and we can discuss it.

    Bob
     
    #10     Nov 30, 2011