Spread trading with Rithmic

Discussion in 'Retail Brokers' started by heispark, Feb 14, 2023.

  1. heispark

    heispark

    Even my current broker AMP respects SPAN margin accurately. Other more professional brokers such as Advantage respect SPAN margin of course. Also, there are other things you need to care about except margin. Working with proper brokers is very important. Otherwise you may also experience my issues mentioned in this thread.
     
    #21     Feb 16, 2023
    Gambit and BAT31 like this.
  2. Ironbeam

    Ironbeam Sponsor

    Most brokers that offer spread trading respect SPAN margins. Where most don't is when it comes to selling naked option selling or other risky strategies.
     
    Last edited: Mar 2, 2023
    #22     Mar 2, 2023
    theledger likes this.
  3. Overnight

    Overnight

    That's not what they told me some years ago. They said that even though the statement will show the spread margin discount, their risk dept still requires full maintenance margin for both legs 5 mins before the close.

    Of course it never made any sense, because they said that when market reopens an hour later, it is back to day-trading margins during new 6PM session.

    I gave up on trying to figure out the why of it all, and unfortunately that decision to always trade with full margin all the time has caused me to lose a great deal of money.
     
    #23     Mar 2, 2023
  4. heispark

    heispark

    That's impossible. If they required full margins for both legs, I would have been margin called already (last year nat gas outright margin once exceeded $10K due to high volatility). The guy in the trade desk confirmed they respect SPAN margin for spread tradings (at least for my nat gas futures).
     
    #24     Mar 6, 2023
    Gambit and Overnight like this.
  5. Gambit

    Gambit

    It is a little disconcerting to think that it is up to the brokers whether or not to respect SPAN margin requirements.
     
    #25     Mar 25, 2023
  6. Gambit

    Gambit

    But it seems like most brokers respect the margins.
     
    #26     Mar 25, 2023
  7. This thread is old but just in case someone like me stumbles upon it... In IBKR you can set the normal spread form, they call it "reverse"
     
    #27     Nov 30, 2023
    Quanto likes this.