Portfolio Margin Profit and Loss at Expiration, Adjust Options and other Corporate Actions, Shorting a Stock: Seeking the upside of the downside market. However, SMA can only appreciate when accounts equity percentage is 50% or greater. Understanding Margin. Charts Questions on the Charts interface and its features. opinions. Since /ES represents $50 times the S&P 500 Index, every 0.25 move in /ES equals $12.50. Slash (/) The backing for the put is the short stock. Interactive Brokers vs. TD Ameritrade 2023 - Investopedia Forex accounts are not available to residents of Ohio or Arizona. Client sells 5 of the October 70/65 put spread in XYZ security for $3.25. In forex and other markets, margin can cut both ways. Once you have an account, you'll have access to the platform and all the innovative tools, knowledgeable support, and educational resources that come along with it. Futures markets are open virtually 24 hours a day, 6 days a week. Additionally some options expire prior to the final settlement or expiration of the underlying futures contract. Take a look at how the mark-to-market process makes sure that margin requirements are being met, and how it determines the daily gains and losses of your positions. The firm was rated #1 in the categories "Platforms & Tools" (11 years in a row), "Desktop Trading Platform: thinkorswim" (10 years in a row), "Active Trading" (2 years in a row), "Options Trading," "Customer Service," and "Phone Support." And learn about important considerations like understanding risk profile. *In this example, Maintenance Excess determines the funds available for trading. Small cap broad-based indices are tested with a minimum -12% +10% price changes. For example, a tick in E-mini S&P 500 (/ES) is 0.25 per point. ThepaperMoney software application is for educational purposes only. and our For more information, please see our Generally, an account that is not breaching concentration requirements, can determine how much stock they can purchase by dividing their Funds Available for Trading (Option BP on thinkorswim) by the securities margin requirement. This can be seen below: In this scenario there are different requirements depending on what percentage of your account is made up of this security. The formula is: Interest Rate x Margin Debit / 360 = Daily Interest Charge. Large cap broad-based indices are tested with a minimum -12% +10% price changes. You can reach a Margin Specialist by calling 877-877-0272 ext 1. In the event your account falls below $100,000 Net Liquidating Value; you will have to bring your account above this watermark or you will be removed from the portfolio margining system. What are the requirements to open an IRA futures account? Margin rates at thinkorswim start at 14% and gradually decrease as the size grows. Privacy Policy. To apply for futures trading approval, your account must have: Please keep in mind that not all clients will qualify, and meeting all requirements doesn't guarantee approval. Successful virtual trading during one time period does not guarantee successful investing of actual funds during a later time period as market conditions change continuously. Regulation T and maintenance requirements are both 100%. Example 3: Client has the following positions. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Below is a list of events that will impact your SMA: *Margin Interest and appreciation/depreciation of non-marginable securities do not have any impact on SMA. Maintenance excess applies only to accounts enabled for margin trading.