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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: jjs_ynot who started this subject1/30/2003 7:37:29 PM
From: jjs_ynot  Read Replies (1) of 2317
 
Some things I don't like about Options Xpress, for short options.

1) The margin requirements for short index and equity options at 25 % of the underlying are well above CBOE minimums and ratchet up the margin requirement rapidly if underlying moves against you.

2) For open orders, they automatically deduct the margin used against your available margin, as soon as the order is placed, even if it never gets executed. At other brokerages, I have many orders in place waiting in line to get executed and may get executed in 2 weeks or never executed. Margin requirement is only triggered on execution.

My observation, FWIW.
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