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Marginrequirement on a Put spread


Guest Sissyfuss

Question

Guest Sissyfuss

Hi appreciate if I buy an option outright, IG requires the entire premium cost as Margin.

if I buy a Put but then sell a lower strike Put (exact same expiry) does IG return any premium to me?

does IG only ask for the net premium (which would be logical as that is maximum loss to me)

 

for example 2900 spx puts March cost 90 say, so margin appears to be 90.

if I sell the 2800 spx puts March for cost 40, does IG still need 90 as margin, rather than 50 (my max loss).

appreciate this only holds if I pair the two trades and they remain paired, so maybe IG has a (sensible) formula for adjusting margin?

 

 

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