Margin

US SSFs Margin


The following calculations apply only to Reg T 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.


US SSFs

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Long or Short SSF

Reg T Margin
Initial Margin 20% * SSF Market Value
Maintenance Margin Same as initial margin.


SSF Spread

Long and Short SSF with the same underlying.

Reg T Margin
Initial Margin Maximum ((5% * long SSF market value), (5% * short SSF value))
Maintenance Margin Same as initial margin.


Protective SSF 1

Long SSF, short stock.

Reg T Margin
Initial Margin Short stock margin requirement
Maintenance Margin 5% * Stock Market Value


Covered SSF 1

Short SSF, long stock

Reg T Margin
Initial Margin Long stock margin requirement
Maintenance Margin 5%*Stock Market Value


Protective Call or Put SSF 1

Short SSF, long call or long SSF, long put

Reg T Margin
Initial Margin 20% * SSF market value
Maintenance Margin Minimum ((10% * option strike price) + out of the money value, (20% * SSF market value))


Covered Call or Put SSF 1

Long SSF and short call or short SSF and short put

Reg T Margin
Initial Margin In the money amount + 20% * SSF market value.
Proceeds from the short option are applied.
Maintenance Margin Same as initial margin.


Collar SSF 1

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

Reg T Margin
Initial Margin In the money amount of call + 20% * SSF market value.
Proceeds from the short option are applied.
Maintenance Margin Minimum (In the money amount of call + ((10%*Put Strike price) + out of the money amount of put), (20% * call option strike price))


Conversion SSF 1

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

Reg T 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)


Reverse Conversion SSF 1

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

Reg T 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)


Disclosures
  1. Not allowed in an IRA account. Each combination component will be margined separately.