Options noob, but why does IB want nearly 3700$ for a 25$ option ??

Thanks to whoever can explain this to me!!

 

CALL YOUR BROKER ON THE PHONE AND ASK THEM! THEY ARE OPEN RIGHT NOW!

 

Cause they have gone SHIAT CRAZY with their margin requirements. Trust me, I've felt it.

 

So this is for real??? I'm not reading it wrong or made a mistake anywhere?? They really want that much for a 25$ option??? The most that can be lost is the 25 bucks correct ??

 

Oh I dunno TKO. It certainly looks like they were saying you did not have enough. But there is that upgrade to portfolio margin? Maybe that will help?

 

I think I'm going to upgrade on outta there!!! Who's the best broker these days for US clients ??

 

If you are buying a $25 call and only for 1 contract, there is probably, not enough monies for the broker to bother with your order. So, they would rather not fill it.

 

I bet what you did.... you're trading in a cash account right(?)... somewhere in the order window is a dropdown menue that has the option for "margin" or "cash".... you probably had the "margin" selected.
Try it by selecting "cash"... I'm sure it'll work.

 

I don't think you can trade options in a cash account.

 

Yea I thought options had to be in margin account as well, could be wrong.