flip26 11 Report post Posted March 19, 2020 I am curious as to the mechanics of charge to capital given debit strategies. Is it safe to say that no matter how complex a multi-leg option strategy is (even across expiration dates), that as long as it is a debit strategy, the charge to capital / margin requirement is only that debit? Please let me know if this question is unclear. Share this post Link to post Share on other sites
Kim 8,043 Report post Posted March 19, 2020 The answer is yes. Margin calculation does not impact debit spreads. Share this post Link to post Share on other sites
flip26 11 Report post Posted March 19, 2020 On 3/19/2020 at 4:45 PM, Kim said: The answer is yes. Margin calculation does not impact debit spreads. Thank you! Share this post Link to post Share on other sites
Yowster 9,862 Report post Posted March 19, 2020 On 3/19/2020 at 4:44 PM, flip26 said: I am curious as to the mechanics of charge to capital given debit strategies. Is it safe to say that no matter how complex a multi-leg option strategy is (even across expiration dates), that as long as it is a debit strategy, the charge to capital / margin requirement is only that debit? Please let me know if this question is unclear. However, like the recently closed TLT backspread (1x2 ratio trade), you can have a structure that is opened for a debit where the margin requirement is higher than the debit paid. Look at that trade alert to see the details. Share this post Link to post Share on other sites
Kim 8,043 Report post Posted March 19, 2020 On 3/19/2020 at 5:32 PM, Yowster said: However, like the recently closed TLT backspread (1x2 ratio trade), you can have a structure that is opened for a debit where the margin requirement is higher than the debit paid. Look at that trade alert to see the details. Yes, very true. There is no impact on margin only if it's a pure debit spread with no margin requirements. Share this post Link to post Share on other sites
flip26 11 Report post Posted March 19, 2020 On 3/19/2020 at 5:32 PM, Yowster said: However, like the recently closed TLT backspread (1x2 ratio trade), you can have a structure that is opened for a debit where the margin requirement is higher than the debit paid. Look at that trade alert to see the details. Ahh, Ok. So I can not make a catch-all statement that "all debit positions do not have margin impact." Share this post Link to post Share on other sites
yashwanth 0 Report post Posted March 30, 2020 yes,margin calculation as the above people told . Share this post Link to post Share on other sites
