IB, SPX ES combinations

Discussion in 'Options' started by raf_bcn, Jun 29, 2017.

  1. raf_bcn

    raf_bcn

    Hi

    _I didn't know that IB doesn't accept combo orders with SPX options and ES futures. Different markets, different regulations. And more, they tell me - In addition, future contracts and securities are not cross-marginable so no margin offsets to lower the
    total margin is allowed between a future and a stock or stock option.

    It is the same with all brokers? For me it is strange that this kind of hedge doesn't have any Margin advantatges.

    _Also IB doesn't accept combo orders with ES future and ES future option. But in this case if I enter the orders separetely, when they are in the account, there will be a margin offset recognized and may lower the account's margin requirements.
    But that is very inneficient for the client because at the time of opening the position with separate legs, the margin requirements will be a lot higher than if was one hedged position from the begining.

    _They also said to me that a lot of brokers separate accounts, one for securities and one for commodities. stock and options are securities, futures not, but futures options, like /Es options are or are not securities. Sorry for the basic question.

    Thanks.
     
  2. Robert Morse

    Robert Morse Sponsor

    Yes, the same.
     
    tommcginnis and cdcaveman like this.
  3. Robert Morse

    Robert Morse Sponsor

    This can be done on other software. I do this on CME Direct. and yes. All futures accounts much be in a futures seg account while equities and options are in a margin account. IB and some other brokers hide this, which may make it easier for you. We have them independent.
     
    Last edited: Jun 29, 2017
    raf_bcn likes this.
  4. raf_bcn

    raf_bcn

    Hi
    It is very interesting the CME DIrect , I didn't know that tool.
    But I see IB it's not a supported clearing firm.
    For my second acount, not yet, I will try to choose a supported broker.
    Also I want to ask you a question about brokers. In IB the gross position value must not exceed
    Net liquidation value multiplied by 30. I would like to know if that is also common in other brokers.
     
  5. Robert Morse

    Robert Morse Sponsor

    Call me to discuss this one. Happy to explain but the answer is yes. Many brokers have some metric for this on the equity/option side not futures.

    Bob