Are you trying to determine which positions are tying your portfolio's buying power? Well, look no further than the Capital Requirement Report window that details the capital requirement (Cap Req) of all your open positions.
You can view the capital requirements of your open positions in two different ways. You can view the capital requirements of your open positions as a column in the Positions tab or within the standalone Cap Req report, where you can view expanded details of each position.
Capital Requirement column in the Positions tab
You can view the capital requirement of each open position in the Positions tab by adding the Capital Requirement column. To learn how to add columns to your positions tab, please click here.
Example of the Cap Req column displayed in the Positions tab on the desktop trading platform.
Cap Req report location in the Positions tab
To access your portfolio’s Capital Requirement report, clicking the CAP REQ icon, located at the top right-hand corner of the Positions tab window within the desktop platform. Your portfolio’s Capital Requirement report will appear in its own window.
Location of the Cap Req report in the Positions tab.
The Cap Req Report is organized by Symbol → Strategy → Position. Clicking the blue triangle next to each symbol will expand and display each symbol’s strategy and position. If you have more than one account, you can view other accounts through the drop-down menu at the top left-hand corner of the Capital Requirement Report window.
Example of the Capital Requirement Report on the desktop platform.
Cap Req Column Definitions
The Capital Requirement Report lists Buying Power Effect, Buying Power (BP) Usage %, Initial (Margin) Requirement, and Maintenance Requirements for all of your portfolio’s open positions. The definition of each column is below:
Buying Power Effect
Buying power returned after closing the position or strategy.
Buying Power (BP) Usage %
Displays the percentage of your portfolio's buying power in a particular position (Buying Power Effect/Net Liq).
Margin requirement used in the buying power calculation.
Buying power required to maintain the position without generating a maintenance margin call.
Alternative Minimum Requirement for Naked Options
In portfolio margin accounts, an alternative minimum requirement will be calculated for each underlying by multiplying the number of uncovered short options by a variable percentage of the underlying deliverable value. While this variable percentage can change at any time and may be different depending on the underlying, the default percentage is 0.5%. For example, if you were to sell-to-open 1 ABC call while ABC is trading at $500 and the variable percentage for ABC is 0.5%, the alternative minimum requirement for this ABC position would be $250 ($500 x 100 multiplier x 0.5%). Additionally, naked equity index options will have a default variable percentage of 0.25%.
Alternative Minimum Requirement Vega Test
An alternative minimum requirement will be calculated for each underlying in a portfolio margin account by finding the worst-case net vega scenario and multiplying it by a variable factor. This variable factor can change at any time and may differ depending on the underlying; the default factor is 10.
Alternative Minimum and Alternative Vega-minimum values will only populate in portfolio margin enabled accounts. Regulation-T margin accounts will list a blank value of “--".
Expected Price Range (EPR) and Point of No Return Percentages
Expected Price Range (EPR) and Point of No Return percentages are now available on the capital requirements window. The Expected Price Range (EPR) represents the firm's current best estimate of the price change of a given security over a one-day period. It is expressed in percentage terms of the current security price and is composed of a lower and upper bound. (e.g. percentage up and percentage down). Point of No Return (PNR) is the percentage move in a security's price where an account would theoretically lose 100% of its net liquidation value, that is when the account's net liquidation value would be zero. If the PNR exceeds the EPR, the risk array will default to tastyworks in-house percentages. The general base minimum for in-house is +/-20 % for equities and equity-based indices -20% +15%. If a PNR is less than the EPR, the higher concentration logic (EPR) is used for a portfolio margin account's requirement. Anytime a security EPR is greater than an account level PNR, a risk concentration exists and the price scenario move will expand to incorporate the increased margin requirement.
Web Browser Platform
The Cap Req Report can be found in the right-hand sidebar of the web browser platform. Once the sidebar is displayed, click the Cap Req icon to view the capital requirements of all open positions.
Location of the Cap Req Report in the web browser platform.
The Cap Req Report in the mobile platform is displayed as a column in the Positions tab, as illustrated below. To add the Capital Requirement column to your Positions tab, tap the column to add additional columns.
Example of the Cap Req column displayed in the Positions tab.