Is Ironbeam allow customer to trade future options? If yes, what are the capital requirements for that? In addition the commission per contract?
Hey @Playback6718,
Yes, Ironbeam allows customers to trade futures options. The platform supports both options trading and complex spreads with a simplified interface for finding strikes and expirations.
Capital Requirements
Capital requirements for futures options vary based on the strategy you’re using:
Buying Options (Long Positions): When you purchase an option, it’s a straightforward cash transaction. You only need enough money in your account to cover the premium cost - this is the debit you pay upfront.
Selling Options (Short Positions): Selling options short requires margin. For short options on futures, the margin requirement is calculated using the SPAN margin system, which is more complex and varies based on the underlying contract, volatility, and risk profile.
Spreads: If you’re trading option spreads, margin requirements differ depending on whether it’s a debit or credit spread. For vertical spreads, margin is typically calculated based on the spread width minus any credit received.
Ironbeam has no minimum funding requirement to open a live trading account, which gives flexibility for traders starting with smaller capital.
Mike Murphy
[email protected]
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May I know what is the commission per contract ? Assuming they are not all the same price right? For example, /mes or /es may have a different price per option contract right?
Somehow I only see 39 cents for micros and the 99 cents standard contract page. Assuming those are for future contract trading right, not for option right?
Hey @Playback6718
The commission for the option would be the same as the commission for the underlying futures contract.
Mike Murphy
[email protected]