I select an option and check margin within TWS option trader. The amount exceeds the money in my account. Can I still transmit the order? I did not try it in case my whole account was liquidated! What happens in this situation? thanks
All that you will get is a popup window ("Order rejected") with some numbers (with respect to margin requirements).
I find the amount shown by Check Margin is not accurate at all. In you account page take a look at your excess liquidity after you place a trade and use that as an indicator. It is more accurate but still nothing to rely on.
"Check margin" is often accurate, although it depends on how much you have on at the time. I have never seen a case where the check margin feature did not provide the worst case scenario. When it is wrong, the actual margin required was more favorable than "check margin" indicated.
The prices they use to calculate the margin from are often wrong. The ES option price they used yesterday was way above the bid/ask in the market.
I would be screwed if my position got liquidated every time I did this. I pushed my margin to the max regularly.
In overnight margin there are two lines 1. Available funds and 2. Excess liquidity. When available funds are negative I close some position to bring it back to positive., even though excess liquidity is positive. Is this the right approach or should I only worry about line two and maintain it positive?Help much appreciated. Thanks
Hi Trajan! Does this mean that you can open a short position even if you don't have sufficient margin? Do you keep these short positions over night or do you close them during the same day? For instance my Eurex broker won't let me open a short option position if I can't meet the margin requirements..