Trader13: The IB email said that they messed up and were restoring the capability to existing accounts. My guess is that new IRA accounts are not getting futures authorized and will not be offered futures trading capability until the new high margin policy is in place. So if I were IB I'd put that "no futures" info on the capabilities web page. Jack
I got this today: This won't kill me, although I hope the margin on front-month VIX contracts isn't tripled - that would mean $31K margin on a contract worth generally $15K to $18K. (I'd understand a larger than usual margin on short holdings.)
Yes, so as I understand it, IB will now require 3x the normal margin for IRA accounts. This won't be a problem for me, since I trade with conservative leverage, but anyone day trading may be in for a shock.
The wording is unclear but seems to say that the maintenance margin level that triggers forced liquidation is not being increased and remains at "current levels".
So the initial margin for ES: For most brokers = $5,060 (the exchange margin) For IB = $5,750 (non-IRA account) For IB = $17,250 (IRA account) It's hard to justify tying up so much more funding that can easily be more efficiently allocated elsewhere. And don't forget those IB "exposure fees."
Energy: The advisory says "accounts that are margin compliant in all respects, with the exception of the increased requirement, would be permitted to hold existing positions.". I think maintenance margins on positions in place prior to April 15th are "grandfathered", not positions opened after April 14th. Jack :
Looks like the new margins took effect just now - I was autoliquidated out of some positions that I opened today. Margin for buying front-month VIX futures (at $13.75, multiplier 1000) is now $30934. Margin for buying second-month VIX futures (at $15.60, multiplier 1000) is now $19984.