Interactive Brokers Incorrect Option Margin Requirements

Discussion in 'Options' started by frostengine, Sep 20, 2017.

  1. Sig


    Sometimes 2 hours, sometimes more. Depends on what "the algorithm" in its great and infinite wisdom decides, since it runs the place.
    #61     Feb 3, 2020
  2. Yeah it sux and I have been caught too. But, you are forewarned. There will be a red box highlighted when you show "Account" page.

    #62     Feb 4, 2020
  3. The margin requirement for vertical spreads is totally nonsensical at IB. If I have a bull put spread on ES at Sell 10 Puts 2700 Buy 10 Put 2650 the most I can lose is 50 pts x 50 x 10 but IB calculates i initial margin at 72 x 50 x 10 and maintenance at 57 x 50 x 10. Retarded. I have yet to see a logical explanation for it.
    #63     Apr 13, 2020
  4. Sig


    They calculate margin on each leg completely independent of the other. As a result, they charge margin for a debit spread, which is obviously absurd since you pay the full price of the spread up front and can lose no more than that.
    #64     Apr 13, 2020
  5. mustafaoe


    Today, I had a similar issue. I had a vertical spread 4 TSLA 455 long and 4 TSLA 465 short. Expiration was 19 June. I have been assigned for my shorts. I do not take assignments seriously as the long side normally prevents margin issues. I was wrong. IB decided in this case that I have margin issue. They did not match the assigned 400 TSLA stocks with the 4 long options. In the end they closed-out the short 400 stocks and only 2 of the long TSLA options. The remaining 2 other long options 455 suffered from todays price action. Once I understood what is ongoing after market opening it was already too late. Just loss. I have contacted them and the guy on the desk see the issue but the message I have received today pushed the responsiblity to me. In other words they do not want to reimburse me for their action. Any idead to make legal claim to IB? What was again the proposed new broker?
    #65     Jun 2, 2020
  6. Atikon


    Happens in Spx too. Made a thread about it. Software doesn't recognizer Iron Condors when you legg in, basically half's your account
    #66     Jun 2, 2020
  7. tonyf


    Does IB provide any heads-up of account deficiency if options are exercised prior to auto-liquidation?
    Is there an alert that one can set-up to avoid the surprise?

    (chat has just confirmed to me that there is no way I can pull margin info in excel with the DDE api)
    #67     Jul 23, 2020
  8. Sig


    Sometimes they do, sometimes they don't. Like everything at IB it's all decided by what The Algorithm decides and no one there knows what rules are programmed into The Algorithm.
    #68     Jul 23, 2020
  9. tonyf


    And have you considered ticking "liquidate last" for your options, and leaving more liquid instruments to liquidate first in case of a margin call?
    #69     Jul 23, 2020
    Atikon likes this.