IB increasing margins

Timo

New Member
#1
A component of Interactive Brokers House Margin is implied-volatility stresses of +/-15%; the results of these stresses are factored into margin requirement calculations. This communication is to inform you of an upcoming change to this algorithm with respect to these implied volatility stresses.

• Broad Based Index: The implied Volatility Stress will be increased to +/- 75%

• All remaining classes: The implied Volatility Stress will be increased to +/- 150%

This change in the margin calculations is scheduled to be implemented in a series of 20% daily increments over a 5-business-day period. The first change will be made before the US open on March 20, 2017 and will conclude before the US open on March 24, 2017.

Traders can use an on-demand margin feature, which will allow traders to see, in real-time, how this margin change will affect their overall margin requirement, once fully implemented. You can access the on-demand margin feature based on your current portfolio by opening a new what if portfolio, within Risk Navigator:


A. From Mosaic - From the New Window drop down, selecting Risk Navigator, and Open New What -If

B. From Classic TWS - From the Analytical Tools menu, selecting Risk Navigator, and Open New What-If


Once you have chosen to open a new what-if portfolio, a pop-up will ask if you would like to prepopulate the Risk Navigator with your current position; clicking on the "yes" button will serve to download existing positions to the new "What-If" portfolio.

Once Risk Navigator is opened with your positions present, click on Settings > Margin Mode > New Volatility Stress Test for OCC Portfolio Margin (from drop-down bar) > OK. As noted above, once you select to apply the new Margin Setting (e.g. New Volatility Stress Test for OCC Portfolio Margin) your margin requirement will immediately reflect to what would be required as of the US Open on March 24, 2017.

Consistent with our stated policy, accounts that are unable to carry the positions under these new margin requirements are subject to automated liquidations in order to bring the account into margin compliance.
 

Bill

New Member
#2
I have not had a PM account before ( Iam in the process of setting one up with IB). What is the result of the new margin requirement calculations with respect to a BSH and STT?
 
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