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to Europe Options Margin Requirements

Europe Options Margin Overview

Europe Options Margin Requirements


As a resident of trading options in Europe you are subjected to Rules-based margin and Risk-based margin. The complete margin requirement details are listed in the sections below.




Options Margin Requirements


Margin requirements are determined by risk based portfolio analysis models specified by each exchange. For specific details, visit the specific exchange site in question. US Reg T Margin requirements are also applied at the end of each trading day.

For Australian single stock options, we apply US rule-based and Reg T margin requirements.






Risk Margin Overview


What is risk based margining?

A risk based margin system evaluates your portfolio to set your margin requirements. The risk valuations of your positions are created using simulated market movements that anticipate possible outcomes. As a result, a more accurate margin model is created, allowing the investor to increase their leverage.


How are correlated risks offset?

Within a group of positions with the same underlying, 100% of the gain at any one valuation point is allowed to offset another positions loss at the same valuation point.

Example: An account holds a long stock position in stock ABC and a long put option contract in ABC. If a theoretical worst case scenario causes the underlying asset to drop 15%, then the loss that on the long stock position would be offset by the gain on the long put position.


What are my eligibility requirements?

Eligibility requirements vary according to the investor’s personal information, region, and exchange.


What positions are eligible?

All positions in margin equity securities (including foreign equity securities and options on foreign equity securities, listed options on an equity security or index of equity securities, security futures products, unlisted derivatives on an equity security or index of equity securities, warrants on an equity security or index of equity securities, broad-based index futures, and options on broad-based index futures.




Additional Europe Margin Requirements for Residents of


Use the following links to view any of our other Europe margin requirements:

Stocks

Futures & FOPs

SSF - Single Stock Futures

Fixed Income

Mutual Funds


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Further Reading


To learn more about trading on margin, go to our Education Center:

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Disclosures
  • Due to regulatory restrictions, Interactive Brokers does not currently offer margin lending to natural persons who are residents of Australia.
  • IBKR house margin requirements may be greater than rule-based margin.