Interactive Brokers Margin

I tried to to buy 1 Apr SPX 1300 put and getting an error message that I have insufficient margin. The message indicates that the margin will increase by 53,985 (see attached image).



I opened a ticket with IB. Their response was:







I couldn't believe this, but the fact remains.

I have been with IB for years, but after this, I'm seriously considering to switch brokers.

 

Wow, that's crazy. If you can change your account to a PM account, you wont have to worry about this.

 

They don't provide PM accounts to Canadians last time I checked.

 

Ahh,

That's too bad. Wonder if this is IB specific. If our resident expert, Bob Morse, could chime in if this would be the case with his company?

 

Only a second to review, KK, but are they (or their *algo*) afraid that you're turning a $20-wide at $2350 into a $1050-wide at $2350?

Were you previously naked anywhere in puts for that expiry?
(Quantities aren't clear here, and I've only time to eyeball.)

If not, whut happened to the other (long) put?



(Sorry so quick.)

 

First, I never had any naked options in my account.

What I currently have is 5 2330/2350 credit spreads (long 2330 short 2350).

They claim that their algo now creates a new credit spread 1300/2350. Which of course is absurd. The 5 2350 short options are still covered by 5 2330 long options.

 

Screenshot of all existing SPX April positions and the error message:

 

That is so whacked.

I have a starkly stinky feeling that if you changed that to a short vertical (of whatever width), it would go through jus' fine. And if you changed it to a *long* vertical (of whatever width), it'd go through jus' fine.

I wonder, too, if your nearly-ATM *owned* put spread at 2650/40 doesn't flip something -- I DOUBT it, but I'd love to try the 1300 purchase with the market at 2651 and 2649.....

I don't use the (I don't know what to call it) "Combo/Spread Form" in QuoteMonitor -- I wonder if you hit Edit/GlobalConfig and turned it off, if that wouldn't force something margin-measuring-wise to recognize the *actual* risk here, rather than trying to INVENT a 2350/1300 spread out of thin air, and apparently FORGETTING about a lonely, now-unpaired 2330 OWNED put remaining.

FWIW, KK, you're helping IB by pursuing this. They should thank you up, down, and sideways.
(Market reference there entirely accidental.)

AND WHAT WOULD HAPPEN IF YOU SOUGHT TO BUY A APR19 3500 C???
Would that show an algo screw-up as well??

 

Something strange is going on at IB, they are raising margins daily.

 

What is Combo/Spread Form?

And how am I helping IB by pursuing this?

 

Edit/GlobalConfig/Display/TickerRow/Complex(Multi-Leg)Positions: check-box

You have "Group legs into complex positions" checked, and there is an error.
I'd give "Hide complex positions" a shot.

((You may or may not have "Simplify combination ratios" checked -- I'd uncheck it, just in case.))

Experiment here, watching the immediate effect on your Portfolio page and on your other QuoteMonitor pages, AND on proffered trades -- including the 1300 put buy. I know it's a reach, but weirder stuff has happened (at IB and at any platform we can name).

You are helping IB BECAUSE THIS IS FUQUED, and HOW has this simple, *obvious* thing, escaped them???

You are BUYING a position -- unless your (unstated) cash is tittering in some bizarre precipice, there is just no universe where BUYING risk acceptance is a bad thing. That is whacked, screwed, fuqued-in-the-brain, and entirely UNWORTHY of a worldwide platform.