Interactive Brokers utilizes option margin optimization
software to try to create the minimum margin requirement. However,
due to the system requirements required to determine the optimal
solution, we cannot always guarantee the optimal combination in
all cases.
You should also be aware that certain restrictions imposed by the
NYSE and the NASD regarding activities of day traders may affect
your option trading. Customers who have made four or more securities
day trades (open and close a stock or option position in a single
day) within five business days in their account are considered "Pattern
Day Traders". "Pattern Day Traders" are required
to hold a minimum of $25,000 in equity. In addition, the total daily
buying power for Pattern Day Trader’s is limited as follows:
Day Trading Buying Power = ((lesser of prior night’s closing
account equity or current account equity) – account maintenance
margin requirement) times 4. Opening orders that exceed the account’s
Day Trading Buying Power will be rejected. Likewise, customers without
the minimum $25,000 equity and who have completed three day trades
within five business days will not be allowed to enter another trade.
Note: The following makes use of the function "Maximum
(x, y, ..)". The Maximum function returns the greatest value
of all parameters separated by commas within the parenthesis. As
an example, Maximum (500, 2000, 1500) would return the value 2000.
Margin requirements quoted in US dollars may also be satisfied with
a Non-US Dollar equivalent.
(Margin requirements quoted in US dollars may also
be satisfied with a Non-US Dollar equivalent)
Long Call and Put Margin
- Initial: None. Long option cost is subtracted from cash.
- Maintenance: None.
Short Naked Call and Put Margin
- Initial and Maintenance: 100% * option market value + maximum
(((25% * underlying market value) - out of the money amount),
10% * underlying market value, $250 * number of contracts).
Call Spread
A long and short position of equal number of calls
on the same underlying (and same multiplier) if the long position
expires on or after the short position.
- Initial and Maintenance: (Maximum (aggregate long call strike
- aggregate short call strike, 0)). Long call cost is subtracted
from cash and short call proceeds are applied to cash.
Put Spread
A long and short position of equal number of puts
on the same underlying (and same multiplier) if the long position
expires on or after the short position.
- Initial and Maintenance: (Maximum (aggregate short put strike
- aggregate long put strike, 0)). Long option cost is subtracted
from cash and short option proceeds are applied to cash
Covered Calls
Short a call option with an equity position held
to cover full exercise upon assignment of the option contract.
- Initial and Maintenance: Standard stock margin requirement
+ 100% of in the money option value. Short sale option proceeds
are applied to cash.
Covered Puts
Short a put option with a short equity position to cover full
exercise upon assignment of the option contract.
Initial and Maintenance: Maximum (Short securities margin requirement,
aggregate Short Put strike)
Protective Call
Long Call and Short Underlying
- Initial and Maintenance: (25% * market value of short security)
+ minimum ((100% * out of money amount), (25% * market value
of short security)). Long option cost is subtracted from cash.
Protective Put
Long Put and Long Underlying
- Initial and Maintenance: (25% * market value of long security)
+ minimum ((100% out of money amount), (25% * market value of
long security)). Long option cost is subtracted from cash.
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