If you are an institution, click below to learn more about our offerings for RIAs, Hedge Funds, Compliance Officers and more.

Margin Requirements - Canada

U.S. SSFs


The following calculations apply only to Margin Accounts. See our Portfolio Margin page for US SSFs requirements in a Portfolio Margin account. Note that for commodities including futures, single-stock futures and futures options, margin is the amount of cash a client must put up as collateral to support a futures contract. For securities, margin is the amount of cash a client borrows from IB.

Note:

These formulas make use of the functions Maximum (x, y, ..), Minimum (x, y, ..) and If (x, y, z). The Maximum function returns the greatest value of all parameters separated by commas within the paranthesis. As an example, Maximum (500, 2000, 1500) would return the value 2000. The Minimum function returns the least value of all parameters separated by commas within the paranthesis. As an example, Minimum (500, 2000, 1500) would return the value of 500. The If function checks a condition and if true uses formula y and if false formula z. As an example If (20 < 0, 30, 60) would return the value 60.


U.S. SSFs

Click on a link below to learn more:




Long or Short SSF

Margin
Initial Margin 20%* SSF Market Value
Maintenance Margin Same as initial margin.
Cash or RSP/TFSA
Initial N/A
Maintenance N/A



SSF Spread

Long and Short SSF with the same underlying

Margin
Initial Margin (5%* long SSF market value) or (5%* short SSF market value), whichever is greater.
Maintenance Margin Same as initial margin.
Cash or RSP/TFSA
Initial N/A
Maintenance N/A



Protective SSF

Long SSF, short stock

Margin
Initial Margin Short stock margin requirement.
Maintenance Margin 5%* Stock Market Value.
Cash or RSP/TFSA
Initial N/A
Maintenance N/A



Covered SSF

Short SSF, long stock

Margin
Initial Margin Long stock margin requirement.
Maintenance Margin 5%* Stock Market Value.
Cash or RSP/TFSA
Initial N/A
Maintenance N/A



Protective Call or Put SSF

Short SSF, long call or long SSF, long put

Margin
Initial Margin 20%* SSF market value.
Maintenance Margin (10%* option strike price) + out of the money value or (20%* SSF market value), whichever is lower.
Cash or RSP/TFSA
Initial N/A
Maintenance N/A



Covered Call or Put SSF

Long SSF and short call or short SSF and short put

Margin
Initial Margin In the money amount + 20%* SSF market value. Proceeds from the short option are applied.
Maintenance Margin Same as initial margin.
Cash or RSP/TFSA
Initial N/A
Maintenance N/A



Collar SSF

Short call, long SSF, long put
Strike (call) > Strike (put)

Margin
Initial Margin In the money amount of call + 20%* SSF market value. Proceeds from the short option are applied.
Maintenance Margin In the money amount of call + ((10%* Put Strike price) + out of the money amount of put) or (20%* call option strike price), whichever is lower.
Cash or RSP/TFSA
Initial N/A
Maintenance N/A



Conversion SSF

Short call, long put, long SSF Strike (call) = Strike (put)

Margin
Initial Margin In the money amount of call + 20%* SSF market value. Proceeds from the short option are applied.
Maintenance Margin In the money amount of call + (10%* call and put strike price).
Cash or RSP/TFSA
Initial N/A
Maintenance N/A



Reverse Conversion SSF

Long call, short put, short SSF
Strike (call) = Strike (put)

Margin
Initial Margin In the money amount of put + 20%* SSF market value. Proceeds from the short option are applied.
Maintenance Margin In the money amount of put + (10%* call and put strike price).
Cash or RSP/TFSA
Initial N/A
Maintenance N/A