vix margin increase at IB

In recognition of the special risk of sudden, significant increases in market volatility inherent in products such as these, IBKR will be modifying our margin requirements based on potential extreme mark-price movement.

Extreme Price Change Scenarios

To protect against the effect that significant, sudden shifts in expected volatility could have on prices of VIX derivatives, IBKR is expanding the set of stress-test scenarios it considers to include one based on the theoretical mark price for the VIX derivative assuming volatility increases by 300% from its then-current level. We will then set the margin requirement to the greater of (i) 35% of the loss from this stress test and (ii) the highest requirement from IBKR’s existing stress-testing calculations.

The new margin requirement will be effective for trade dateSeptember 26, 2022. Changes will be put into effect sometime after the New York regular trading hours close onSeptember 23, 2022.

As the margin impact is portfolio-dependent, we recommend that you review the full effect on your account before and during implementation. In addition, please take the necessary steps to remain margin-compliant and avoid becoming subject to forced liquidations. To evaluate the full impact of this proposed change on your margin requirements, please seeKB Article 2957: Risk Navigator: Alternative Margin Calculatorand utilize the margin mode setting in Risk Navigator, select "Margin20220926."

Consistent with our stated policy, accounts that are unable to carry a position under this new margin requirement are subject to liquidations to bring the account into margin compliance.

 

Just got a message tonight from IB that holding FLWS (1-800-Flowers) will now require 100% margin. Not an issue for me but really odd. Makes you paranoid that the market is about to drop further.

 

Flws is on the verge of becoming a penny stock.

I hear you on the canary in the coal mine.

 

I thought every stock is 100% margin or 200% on the short side with IB? IB risk department is always overreacting, they're at emergency level margin for years now.

 

Any other options brokers with better margin?

 

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Good point on Flwrs being almost a penny stock; a canary in a coal mine[early warning].
Even though a bear market[under 200dma] drops + downtrends are much more common than mine gas or cave in cave .........
Then came the day @ the bottom of the mine\
when a timber cracked + men started cryin'- Big Bad John -JD Song\31 million Video views