Etrade has messed up margin requirements

status1

Well-known member
So I was trying to place an adjustment to a couple of diagonals that I have on RUT and I am getting a message saying I don't have sufficient funds
After talking to them on chat I find out that they raised the margin requirements so according to their messed up rules

"The requirement increases within 5 days of expiration for European style options. The current requirement is the standard spread requirement (width of spread X # of contracts X 100) + 2% x (index price x # of contracts x 100)."

So it's not a problem when you place the trade but if you hold it to less than 5 days now all of a sudden there is a big risk and have to raise the margin
So that was already like that since Monday because I have the expiration this Friday but they never sent me any notice I had to find out the hard way when trying to place a trade On the website it says margin call but there was no due date so after I talked to them they quickly fixed that and sent me an email saying the margin requirement is today

So the saying that "The price of the debit is the max you can loose" may be true but only if you have a whole lot of extra cash to cover the useless margin call
 
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