Looking at this buy-write: and this is the maintenance margin: Equity is +470 post trade Entry cost is 270 MM is 1150 1150 - 470 = 680 Why is the holding cost 680 for a trade that can only lose 269 MAX? Am I missing something obvious? How can a CC cost more margin - equity than the Maximum loss?
I too wonder when the margin requirement is way higher than the max possible loss. It's aprroximately this CC trade: https://optioncreator.com/steb7lu
Is this with IB? I seem to recall they've got some kind of minimum margin thing on penny stocks that get's you margins bigger than max possible losses?