IB Margin Requirements on futures are crazy!

Discussion in 'Interactive Brokers' started by newbunch, Mar 16, 2021.

  1. According to the CME website, the maintenance margin on the July 2021 Natural Gas future is $1,900. But when I go to sell this contract on IB, TWS tells me the initial margin requirement is $5,499 and the maintenance margin in $4,399.

    Am I missing something? Or are IB's margin requirement just crazy?!?
    IB-NG.jpg
     
    murray t turtle likes this.
  2. Another crazy example. The CME margin requirement on the Indian Rupee future is $1,400. IB is telling me I need an initial margin of $5,618 and a maintenance margin of $4,495.

    I know that futures traders aren't supposed to be using up anywhere near all their margin, but when IB requires 2-3x the normal requirements, it's not hard to hit those limits.
     
  3. I'm not sure if their margin requirements are crazy, but they seem to be higher than most brokers.
     
    murray t turtle likes this.
  4. %%
    I dont know why T Boone Pickens invested + traded all his life in gas + oil; + went broke in nat gas.
    WITH a 10+ 20 yr year nat gas chart, clears the air partly. Maybe he borrowed to much, i dont know. He did mention a wolverine type banker /she pissed on every thing she did not eat\so to speak.......................................................................................................................
    Sounds like if anything they underpriced it/but i dont trade that one much even in ETFs. I trade XLE some but oil + gas is so vol\but has good volume. i dont miss it with a few trades per year. I dont know why Bunker + Bro Hunt used so much leverage in sliver bankruptcy; seemed to work well for them in oil..................................................................................................
     
  5. IB is known to be conservative about most things... margin requirements, especially. Higher ones are a "safety factor" for both customer and firm.
     
    murray t turtle likes this.
  6. %%
    OLD FASHIONED, i think/ but in a good sense. I saw the IBKR founder in a pic of huge line of yellow cabs..................................................................................... He was riding a horse + the punchine == ''never choose an ordinary investment vehicle''LOL/True.:caution::caution::caution::caution::caution::caution::caution::caution:
    That may sounds like fake news/LOL but the pic was real anyway..........................................
     
  7. wmwmw

    wmwmw

    From AMP:

    Name:Natural Gas
    Symbol:NG
    Exchange:NYMEX/Globex
    Maintenance:$2,300.00
    DayTrade : $575.00
     
  8. RedDuke

    RedDuke

    Correct. They have been like this for a very long time. We moved away from them due to tech issues, but margin was not an issue. It is not crazy, and if anyone really need exchange minimums, it only means they greatly over leverage themselves.
     
  9. It is normal for futures traders to use 30% margin. My aim is ~50%. But when some are 2x-3x normal, it's easy to get to 100%.
     
    murray t turtle likes this.
  10. %%
    OK by me.
    Its normal+ easy in some markets to use 100%\but the forclosure rate is too HI.
    NOT a predicition+ nat gas is not one of them[not saying you thought that \just sayin'..................................................................... ]
     
    #10     Mar 16, 2021