Substantial margin requirement at different brokers

Discussion in 'Options' started by curiosity, Jan 14, 2025.

  1. https://support.tastytrade.com/support/s/solutions/articles/43000435177

    https://www.interactivebrokers.com/en/trading/margin-options.php

    For example I tried to sell naked put VST 150 strike price and BP requirement at Schwab was $1500 but the same trade Tastytrade required - $5997.5 ---

    This is 4 times higher than Schwab

    I also checked moomoo and for this trade they need about $4500

    Tastytrade has a support page that gives formula to calculate margin requirement.

    https://support.tastytrade.com/support/s/solutions/articles/43000435177

    $5997.5 is substantially higher than support page formula too

    Can someone explain why such difference among brokers?
    I guess each broker has different risk management policies ?

    Or for brokers who have higher margin requirement - has some other selfish motive other than risk? for example float income?
     
  2. newwurldmn

    newwurldmn

    it’s just risk. You get the float income on the cash.
     
  3. Sergio123

    Sergio123

    Maybe it has to do with the stock that the brokerage firm is holding or alot of their other clients are holding.
     
  4. zdreg

    zdreg

    It is everywhere in business. Benefit from it and keep quiet unless you want that benefit to disappear.
     
  5. newwurldmn

    newwurldmn

    are you competing for the dumbest post of the day? How does one benefit from brokers having different margins?
     
  6. zdreg

    zdreg

    Admittedly I cannot compete with you but will keep you in mind for my annual competition.
    Competition is a good outcome. Study the role of competition in a capitalist system.
    _------------
    are you competing for the dumbest post of the day[/QUOTE]
    I think you have found your niche on ET and should post your remark at least once a day.:D
     
    Last edited: Jan 15, 2025
  7. newwurldmn

    newwurldmn

    this was not as witty as you thought it would be in your head.