I’m an IBKR customer with a regular margin account. I’m long some equity call options, vix call options, and fair amount of vix call debit spreads. I’m have no naked options and have no short or long shares, no futures etc. I’ve borrowed nothing and used no margin. Even though everything is paid in full ibkr decided to impose a margin requirement on my long vix call spreads thereby liquidating some of my other long options (not the call spreads). Is this normal? When speaking to them they don’t have a logical explanation outside of the fact that they’re allowed to do as they wish. Anyone have experience with this? You can here their explanation at this link: https://vocaroo.com/1d7sK55ZFa56
@def The caveat with any broker is that they can close your positions without notice to you at any time, for any reason, and they do not have to explain the reasons for it to you. It's all about their internal "risk management". Look through your customer agreement packet when you opened the account. You'll see it in there. It SUX.
It certainly does, it feels as if they put the customer dead last. Why do you think they actually sold some of the other options in my account? Are there any logical reasons that aren't nefarious? i.e. why did they actually do it?
That audio was.......interesting. I'm interested to know if your debit spread was a long and short in the same expiration.
I have never done business with IBKR so cannot answer that question. That's why we tagged @def He might be able to answer your question, or direct you to someone in the appropriate department who can.
What were the most recent positions established? The VIX spreads are straight debit verticals? A broker can't liquidate a fully paid position unless the trigger was something other - if something in the account triggered it - it's why you liquidate a fully paid, but you can't do it on a whim. Was there available cash or available money-line SMA? If the circumstances are as you layout and your unsatisfied by their answer, Complain to FINRA ASAP!
yes, long the jan18 $18c and short the Jan18 $23call. Cash settled vix. Did you listen to the audio in the original post? Does that sound like a good answer?
Parts of it are correct and parts are wrong. What trade did you do last. VIX is a European and present a problem because the offset is not like American options. They become a concern, but verticals are easier. Anything other than a vertical and the short will be picked up as uncovered. What was IB's answer?
the last trades I put on were long $Mara ATM calls, long OTM SPY put spreads. I did theses. IB’s answer is that they can do whatever they want whenever they want with vix products essentially. It’s on their website and I agreed to it.