Interactive Brokers Margin Requirements for Options Spreads and Restrictive Quantity Limits...

Because it's $10,000 -9,700 (Limit price of 97) thus $300..

 

they will also want the 9700 as collateral.

 

Is it a call spread? Over 1000 points in the money?

 

Yes. I often trade these spreads and capture small moves to make money.

 

You're right. However I can trade more of these on other brokers, as they allow the trade to go through. So ten of these contracts with TD etc will be 3k. Whereas with IB it's 100k. Nonsensical.

 

Moot. IBKR will not allow you to trade 500K contracts per ticket.

 

Sorry, I'm late to this discussion and haven't read all the replies, but just this:
Maybe "Spread trading permission" is not enabled in your account; just ask the support.
One normally needs to apply for this.
Check https://ibkrguides.com/clientportal/optionstradingpermissions.htm

 

I wasn't aware of this. Could be a contributing factor in margin requirements. Thank you for that information, I'll check it out.