Hi Guys, anyone else having this issue with inital margin being twice what it's supposed to be? They say on their Website, that IB would only take the Spread on the Put Side as Buying Power Reduction, which would make sense. Yet Initial Margin is double what it's supposed to be and it's messing with my P/L.
It depends on several factors. First you must buy them as a combo. If you buy 2 legs separately I found myself in the same problem you have. 2nd factor is portfolio margin which considers certain greeks levels as risky. 3d factor is options have an exponential margin. Means if you sell 10 of the same options your margin requiremebt will be way less then half what it is if you bought 20.
Did someone told you why it doesn't recognize the other side when you buy them seperatley? TOS did it from the getgo
I did not get told so, I found out by myself. The thing is sometimes it does match them other times it doesn't. Edit: you could consider having a separate Account for PNL reasons.
No, the other way around. IB is the only non shady shop in this business. I know only 1 broker who bailed out their clients when they bought WTI below 0.00. And I know only 1 broker who doesn't sell order flow. They are the only shop who do not pick pocketing with widening spreads to stop out clients. Seriously if you consider them to be junk you chose the wrong career.
Haven't heard any complaints about the stop out either. Etrade is apparently stopping out ppl at the max of their tollerance. IB is supposed to be fairer. Just akward Workstation and sometimes unlogical algos, but overall best value
Widen stops to stop out clients?! Take your tin foil hat off. In the stock market brokers are widening spreads to stop people out?! lol you are delusional. IB had to bail out clients, their software accounted for millions in losses. People like you are whats wrong with the world. You talk loud about things you know nothing about.