Sudden Margin Hike – S&P 500 Options (CME)

Discussion in 'Options' started by BullTrap, Jun 14, 2025 at 3:50 AM.

Have you ever faced a sudden margin increase without notice?

This poll will close on Jun 24, 2025 at 3:50 AM.
  1. Yes, with a broker in the EU

    0 vote(s)
    0.0%
  2. Yes, but outside the EU

    2 vote(s)
    66.7%
  3. No, never

    1 vote(s)
    33.3%
  4. Not applicable

    0 vote(s)
    0.0%
  1. BullTrap

    BullTrap


    Hello everyone,
    I’d like to know if anyone has experienced something similar.

    In my country A well-known broker based in Italy suddenly changed the margin requirements for selling plain vanilla options on the S&P 500 index listed by CME: for a deep OTM put with short maturity they start appliyng about 11 K of margin for contract.
    Margins were tripled overnight, with no prior notice, no updated documentation, and no clear explanation.

    This move completely wiped out my ability to operate.
    Advanced option strategies became unviable. Customer support opened a ticket, then closed it without addressing the issue or offering contact with a responsible person. I’m especially interested in hearing from those who operate professionally with options:
    Have you ever faced sudden structural changes like this?
    How did you deal with it?\Are there any more transparent EU-based brokers you would recommend?

    I'm now seriously considering switching broker, but I’d like to hear from those with real experience before making the move.
    Thanks in advance — any insight would be greatly appreciated
     
  2. newwurldmn

    newwurldmn

    Yeah. Brokers can do that at any time for any reason. If you aren’t borrowing money from them (explicitly or implicitly) then it isn’t an issue
     
    taojaxx likes this.
  3. taojaxx

    taojaxx

    Position sizing will save you. Don't leverage to the eyeballs.
     
  4. qwerty11

    qwerty11

    Why trade at a bucket shop?
     
  5. All portfolio margin accounts saw a bump in req about 10 days ago.