A position described as a Universal Spread combines options that may not have been traded together as a defined strategy but when grouped together can create a lower margin requirement due to recognizing related offsets. If a Universal Spread creates a lower margin requirement, then that becomes the current margin requirement. However, when the cost to close each option leg in the Universal Spread is higher than the calculated margin then the cost to close each leg in the Universal Spread is combined and becomes the new current margin requirement. Universal Spread margin info can be found on this Finra web page.
What is a universal spread in my margin report?
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What is the margin on a spread option strategy?
The margin requirement for an option spread in a RegT Margin account is rule-based. The margin requirement for an option spread in a Portfolio Margin account is risk-based. More information on US options margin requirements…
How do I set a limit on using margin?
When you open a margin account you have the ability to borrow from IBKR. You can not set a limit or a set only a specific amount of margin to use in a margin account. If the account has sufficient Available Funds then a new order would be accepted. There is a calculated margin requirement for positions in a margin type account displayed as an Initial margin and Maintenance margin requirement. In addition to contracts traded in the account any borrowed cash from Forex trading or from trading outside the account’s Base Currency can have a calculated margin requirement. There are tools available so you can monitor your account’s margin requirements and cash balances in real time or as a daily snapshot…
How can I view my options combined into a diagonal spread?
If you legged into an option combo, it is not possible in TWS to group the legs into a complex position. However, TWS offers the ability to create a combo spread order to close multiple, independent options positions (on the same underlying) as a single, complex, multi-leg order…
Does a cash position offset a Forex Future margin requirement?
A long or short currency balance does not offset a margin requirement for a Future contract. Currency can be converted and traded in your IBKR Universal account's Securities segment while Futures contracts are held in your IBKR Universal account's Commodities segment. You will need to have enough Available Funds to meet the calculated margin requirement for any open Futures contracts in addition to any calculated margin requirement for an open Forex currency balance held in the account. …