Since no distiction is made one has to assume and operate under the premiss that 4% of the ES is 2900, is the maintenance margin which is a tad above the overnight mainentnace of 2800. Therefore the overnight margin effectively has become the intraday at IB.
That was a quick summary and the way it works out in practice.
Do the math. Read the memo.
SPECIAL MARGIN CONDITION
The following table contains Interactive Brokers' standard intraday margins and are derived from the exchange statutory margins. Under conditions of unusual volatility, IB may occasionally limit the amount of the intraday margin reduction in recognition of the higher risk.
We feel the current market volatility warrants additional margin to ensure accounts have adequate financial capacity to handle sharp, adverse movements. Accordingly, effective August 6 2007 and until further notice, IB will apply the following logic to determine the intraday margin:
Effective Intraday Margin is equal to the table value (listed below) or 4% of the contract value (price times contract multiplier). If this amount exceeds the normal overnight margin as listed on the below table, it will be capped at the overnight amount. Mathematically, this can be expressed as:
IntradayMargin = MIN( overnightMargin, MAX(tableMargin,4%*contractValue) )
Actually I find this very prudent and correct on the part of IB. I personally would raise the initial margin on the ES to 5000.00 from 3500.00 and wish they had a setting so that one can chose their own margin settings above and beyond the statutory ones.
Edited by zedor, 07 August 2007 - 05:44 AM.
