IB Margin question

Discussion in 'Retail Brokers' started by noname, Oct 2, 2003.

  1. noname

    noname

    Today I had 1 stock position open and several options. I bought another option. The difference between my total account value and what my total account value is fell to beloew $2000. My stock position got liquidated and now it looks like I can't use margin. IS it because of the option I bought? Its the only thing I can think of. I didn't relize that having that money in options would cause liquidation
     
  2. options are cash only. cant margin them.
     
  3. Htrader

    Htrader Guest

    Now did IB liquidate right after you bought that last option because you had an immediate margin call or did IB liquidate only after your positions moved against you putting you in a margin call?

    Options don't count towards margin so if it was the 2nd case, then the market just moved against you. too bad.

    However, if it was the first case, then TWS should have prevented that final option order from being accepted in the first place since it would put you below margin limits.

    If it didn't, then this is a TWS bug that should be fixed.
     
  4. noname

    noname

    "The difference between my total account value and what my total account value is fell to beloew $2000"

    That was supposed to be the difference between my options value and account value fell below $2000. I'm not sure if it was immediate, I had to leave for a while. I know options are cash only. My total account value is above $2000 but after the options that I have bought, whats left is below $2000 thats why I think what I had might have gotten liquidated. also my position never went against me, it moved a little in my favor actually.

    I hope that was clearer
     
  5. alanm

    alanm

    If the stock position really did not move against you, I agree that this should not have been possible. It should have rejected the last option purchase for not having enough free cash available. You are talking about _buying_ options, right?

    Can you give us the exact details, like starting equity and positions, exact trades, and amounts.
     
  6. def

    def Interactive Brokers

    You say that you had several option positions. Thus if the portfolio dropped below the maintenance level, the stock would most likely be the first thing to get liquidated. Send a mail to the help desk if you are seeking additional info.