margining multi-leg positions in stocks

Discussion in 'Stocks' started by endicottsteel, Mar 16, 2016.

  1. Wow and awesome. Thanks for the knowledge.
     
    #11     Mar 17, 2016
  2. destriero

    destriero



    There is no way to make it margin-efficient in a retail account, even with portfolio margin. Say you're short the ETF vs. the long synthetic basket. Neutral price and you're probably talking about variance on the order of $500-$600 per day, max, with PM. It's just not feasible.

    You would need to be trading a prop sub-account to effect it. No back-office at a BD is going to allow you to go on call. You would need to be at a place like Bright or Echo. Friesen at Bright probably sees this 10x a week. It's nothing for them.
     
    #12     Mar 17, 2016
  3. exacta
    exactamundo thanks for confirming. I am learning options so get ready for some trolling. cottle, baird & sinclair are getting a re-read.
     
    #13     Mar 17, 2016