Margin Calculation / Charge to Capital

[flip26 11]

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. 

[Kim 7,447]

The answer is yes. Margin calculation does not impact debit spreads. 

[flip26 11]

Just now, Kim said:

The answer is yes. Margin calculation does not impact debit spreads. 

Thank you!

[Yowster 7,995]

47 minutes ago, 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.

[Kim 7,447]

10 minutes ago, 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.

[flip26 11]

13 minutes ago, 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."

 

[yashwanth 0]

yes,margin calculation as the above people told .