Interactive Brokers Notice of Upcoming Margin Changes


Well-known member
I received an email from IB today about upcoming margin changes. Here's the email:


Dear Client,
This communication is to inform you of an upcoming change to our margin algorithm. The change generally increases margin for portfolios consisting of a significant number of options and which have a high gross exposure ratio.

The new margin requirement will be effective for trade date August 23, 2021. Changes will be put into effect sometime after the New York regular trading hours close on August 20, 2021.

The effect of this change on the margin treatment is NOT expected to result in a margin deficit in your account U****XXXX, based upon calculations at the time of our initial review. However, as market conditions and/or positions and equity within the account may have changed since the time of the initial study you should examine your portfolio and determine if these changes will create any capital (margin) deficiencies in your account.

Consistent with our stated policy, accounts that are unable to carry a position under this new margin requirement are subject to liquidations to bring the account into margin compliance.

Please contact your local Client Service center should you have any questions regarding this notice.​

Interactive Brokers​

I suspect IB is concerned with the market volatility and increased chance for a larger pull back. Many options strategies like Broken Wing Butterflies (BWB) have quite a bit of downside risk.
Contact Us