Has anyone come across issues with margin requirement for a broken wing butterfly trade? It's a debit transaction. There should be no additional margin beyond what you pay for the trade (the debit amount). However, OptionsHouse has a different take on it. Their margin requirement is based on the consideration that a BWB is actually a combination of 2 different trades (a credit spread and a debit spread) and they need margin for both sides of the trade as if you are putting in two separate trades. When I contacted their customer service, their answer is BWB is not a "reconginzed trading strategy" for them. Has anybody faced this issue with any other broker?
The margin required for a BWB is the max risk, not the net debit.