Margin Requirements before execution of Trade

I sell options and it is not possible to know the required margin until the trade is executed.

With my system the maximum i can trade is only 65% for risk managment purposes and because of this problem some times i may go over the limit.

It would be helpful if Collective2 provides the margin requirements prior to execution of trade.


I totally agree with your comment.

However, I suggested this to Matthew over a year ago and nothing has happened. So I’m not hopeful that it will be done in the near future.


Yeah Jim,

I too sent a query but there is no proper response from the support team.

At first no one understood the query and after repeated clarifications of the same question i barely got any response.

I am really getting frustrated with the support team.

It is a simple thing which does not take long to fix; but the Collective2 team is very slack.

For a system like mine i have to stick with the tight margin usage requirements and already got stopped out of margin calls few times.

This is really bad for my system performance

I don’t know how to lobby for this meagre thing.



Hi, Pradeep:

The basic formula is as follows.

For selling options short, uncovered – assuming there are no spreads or straddles – the amount of net margin required is:

The greater of either:

(20% x underlying price) - outOfMoneyAmount


10% x underlying price

Hi Mathew,

I appreciate your response

When it is so simple why wouldn’t you have a field that shows prior to execution and the balance remaining after the execution.

It would really help my subscribers to maintain the margin requirement set by my system.



We do have that.

1) You can see your up-to-the-minute buy power in the upper right of the order ticket.

2) After you execute an order, it changes.

3) Also, you can see the trade-by-trade margin/equity/cash requirements (to help you understand how each trade affects each of the buckets) by unfolding your open positions list on your system page.

4) Also, you can also see the aggregated balances/equity/margin in the Model Account Status box of the system page.

Hi Mathew,

You are still revolving around your responses but not showing enough interest to my problem.

"collective2 doesn’t show the margin requirement before execution of the trade."

If you can fix this, it would be helpful for a lot.