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The IB / Timber Hill relationship does not bother me as well. Its the IB policies that result from it that I dont like. Do you understand?

Yeah, And 65-75% + of IB's profit over the last 5 years was from Timber Hill. To me thats a huge conflict of interest. I don't "trust" that IB will do whats right for its costumers, if there is any chance it could hurt TH profits, its that simple.

Do You mean Timber hill making more money?

Even if you decide to use margin with IB (somthing I wouldn't recomend), don't ever ever use partfolio margin with IB. Margin is being recalculated every night, and if there is a volatile day their margin requirments can get increased by 50% the next day before market opens. Then when the...

Even if its a margin account, as long as you trade only long options & don't use the margin you are pretty safe.

Margin calls are as old as the market is, almost every longtime trader did had allready a margin call or got very close to it. How did you guys handle it? Did you change your strategy after a margin call? Share your expiriance so others can learn from it.

I think the liquidation issues and the conflict of interest that Timber Hill might be profiting of these liquidations is 10 times more important then the costumer service.

10 minute warning? Where did you got this info from? based on my info. its 60 seconds or less.

Its obvios that IB people want people to know as little as possible re their liquidation policies. Questions about their liquidation rules are almost never answerd by IB bloggers.

And perhaps they shoudl give you a choice of a "smart without TH" so if someone dosent want to deal with TH they should have the choice as well. Makes sense?

Come on Def, somthing is wrong with you, you allways seems to get things in just the opposite way. No one has a problem if you give clients a timber "choice", but people have a problem is, that you somtimes force them to sell to Timber (thru smart ar liquidation) when they are not even "aware"...

Most of these companies will do anything technically allowed by the law, and will lobby to change the laws, so they can make some more money for themself.

10. If margin requirements are increased, by IB or otherwise, and there is insufficient equity in Customer's account (s) to meet such increased margin requirements, then IB without notice to Customer, may liquidate Customer's positions in any of Customer's IB accounts, or otherwise apply...

From IB's agreement regarding order routing.. Affiliate Relationships: IB's affiliate Timber Hill LLC makes markets in stocks and acts as a specialist or market maker on all U.S. option exchanges. Other IB affiliates worldwide, including Timber Hill Europe, also act as market makers on...

I would have thought based on your serial defending IB, that you probably trade with them in the Billions. Now I find out that you hate IB because of their liquidation polices, and because their reps don’t know you by first name. I guess you need some hand holding, then IB is not for you.

Yeah.... that's a good one. However they want be able to cover it from 1 liquidation of a spread, but from thousands of liquidation that's probably a different story. Who knows, mabye they will tighten margin again now... (obviosly because of the volatility..)

The other option you have is to use IB, but never use margin with them. Then you have the best of both worlds..

Is IBG LLC also buying positions that a are being autoliquidated for distressed prices by IB LLC clients? is there a c conflict of interest in decisions done by IB LLC management, to also take into avcount how it would affect IBG LLC & Timber Hill?

Its the other way around. IB is a market maker, they also have a brokerage division.. (around 65-75% of their profit over the last 5 years where from market making)