Interactive Brokers customers now have access to Risk Navigator, a margin calculation tool to determine and model margin requirements.
Using Risk Navigator to Show the New Margin Requirement
- Click on the TWS menu item Analytical Tools.
- In the Portfolio section of that menu click on Risk Navigator and then click on Open New What-If in the walking menu. (You may need to click on the inverted triangle at the bottom of Analytical Tools menu in order to extend the menu to show the Risk Navigator selection.)
- A pop-up window will appear with the question, "Prepopulate new portfolio with your existing positions?" Please click Yes.
- You will now have a Risk Navigator What-If portfolio window that contains the portfolio that was in your account when you executed this procedure.
- That dashboard at the top of the Risk Navigator display shows your accounts Net Liquidating Value, Maintenance and Initial Margin requirements and other values.
- Click on the What-If Portfolio Settings menu and click Margin Mode...
- That will open a new window entitled Margin Mode Settings. You can use the drop down menu in that window to change the margin calculation from Default (being the current policy) to New Margin Calculation Rules for Volatility Products (being the policy that will take effect on 19 August). Once you have made a selection click the OK button in that window.
- You will notice that the margin numbers in the What-If Portfolio dashboard will update to reflect your choice. You can toggle back and forth between the Margin Mode settings. Note that the current Margin Mode will be shown in the lower left hand corner of the Risk Navigator window.
- You can modify the positions in the What-If Portfolio to see how that changes the margin. After you altered your positions you will need to click on the recalculate icon to the right of the margin numbers in order to have them update. Whenever that icon is present the margin numbers are not up-to-date with the content of the What-If portfolio.
- If you have positions that will expire prior to 19 August you can set them to zero in the What-If Portfolio and make corresponding changes to reflect positions that you might receive in the contracts that underlie those positions in order to evaluate what the margin will be in that circumstance.
- You can add, modify or remove positions in the What-If Portfolio in order to explore how those changes will affect your current or upcoming margin.
(Special note: This article applies to instructions from an Interactive Brokers Client Services notice on August 4, 2017 entitled Volatility Product Margin Increase.)