Why does Interactive Brokers impose such restrictive limits for options trading?

Discussion in 'Options' started by Con1991, Apr 18, 2023.

  1. Overnight

    Overnight

    Well, you got me there. I guess you can call IB and complain to them that they are not following the CBOE guidelines.
     
    #21     Apr 18, 2023
  2. Con1991

    Con1991

    Not at all. Your input is valuable and insightful. I guess it's a case that not many retail traders are trading such sizes, and many more would not in any event.
     
    #22     Apr 18, 2023
  3. destriero

    destriero


    durrrr
     
    #23     Apr 18, 2023
  4. destriero

    destriero

    There is no pre-defined pool of option contracts. Both the buyer and seller can be opening the position, therefore increasing OI. You cannot corner the mkt, as it were.
     
    #24     Apr 18, 2023
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  5. newwurldmn

    newwurldmn

    the world is littered with traders who have tried (mentioned in the chat).
     
    #25     Apr 18, 2023
    Adam777 and destriero like this.
  6. SunTrader

    SunTrader

    What is the point of "sim"-ing a trade you don't have the funds to execute live?
     
    #26     Apr 18, 2023
    albion, rb7, earth_imperator and 3 others like this.
  7. newwurldmn

    newwurldmn

    No broker would let you trade 200k options in real life. I don’t think a bank desk would even facilitate it for Warren buffet.
     
    #27     Apr 18, 2023
  8. destriero

    destriero

    OP, buy 1K ATM GME calls at mkt and report back with the pre and post vol-line on the contract purchased. Thanks.
     
    #28     Apr 18, 2023
  9. destriero

    destriero

    Yeah, F that softbank guy.
     
    #29     Apr 18, 2023
  10. mervyn

    mervyn

    You read this wrong. No position limited is related to the positions that exist. If you are not in a position, it is moot.

    No one would ever trade 80 billion standardized contracts with you or goldman or morgan. You have to go into swap market (aka cfd), asked bill huang.
     
    #30     Apr 18, 2023
    rb7 likes this.