IB margin calc

Discussion in 'General Discussion' started by Hugh, Jun 26, 2015.

  1. Hugh

    Hugh Well-Known Member

    Does anyone know how the IB margin calc works? I asked support but they wouldn't tell or didn't know.

    It seems wrong... if my loss on a 2% rally is less than a 2% sell off the margin is reduced by buying additional calls. I would have thought it would be the opposite. i.e. buy puts/calls to reduce the side with the greatest 2% loss
  2. Venkat

    Venkat Guest

    Did you check this link?


    Margin varies on broker, type of account (Reg-T vs PM), initial/maintenance margins, type of security trading (SPX margins are different from RUT, broad based indices have different margin than equities), types of strategy being used (sometimes BWB might have more margin than a traditional fly)....
    Last edited by a moderator: Jun 27, 2015
  3. Hugh

    Hugh Well-Known Member

    thanks Venkat. I'll take a look at the article. I think IB uses SPAN margin calcs so I'll also take a look at how SPAN works. Its just the principle (see my comments above) that looks strange to me.
  4. us271782

    us271782 Member

    Sorry to piggy back on such an old thread, but I've looking at IB for a new account since TOS refuses to modify my current rate. I've done some research on the IB margin and it looks to me as if the margin on BWB positions is much higher than TOS. It would appear that IB margins both sides? Can someone confirm that for me?
  5. tom

    tom Administrator Staff Member

    Is this for a Reg T or PM account? Do you have a sample trade? I can put it in TWS and see what the margin required would be.
  6. us271782

    us271782 Member

    Tom - here's a BWB position entered about 1 week ago in my accounts, all are Reg-T. The margin per BF is about $1,126 if I'm reading this correctly.
  7. tom

    tom Administrator Staff Member

    The PM margin was $754 and the Reg T margin was $10,000 but you have a credit of $7,848 so the net requirement is $10,000 - $7,848 = $2,152
  8. us271782

    us271782 Member

    Perfect, thank you.

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