ATTENTION IB REPS: be it resolved that margin is too low

Quote from wwx:

Steve:

Trying to understand Joerg's grievance...

Do you mean that a number of EUR/GBP trades "occurred" as a result of spikes or other exceptional circumstances?
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Yes, on wednesday I come into position at 'moon'-prices.
So I was exspecting a 'trade bust' of cource, thats normal
(see trade bust policy at IB).

But not in this way at especially at this time it was handled(see last post), thats why I am obset.

Forex Trading is 5.5 days 23,5 hour a day, there is no need placing currency positions on friday after market close !!!!

Joerg



Joerg
 
Joerg you are saying that the trades were done on Wednesday but weren't broken until Friday?? This doesn't make alot of sense to me. I would have thought this sort of thing would occur immediately or at least within a couple of minutes of the bad trades going through, not 2 days later and certainly not after the close of business which would leave you exposed over the weekend. I hope IB makes good on this to you as this would leave a very bad taste in my mouth.
 
Quote from The Gambler:

Thanks SteveIB for the margin information.
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Sorry 'Gambler' for disturbing/misusing your thread.


One Question to SteveIB concerning margin:

For me it would help, I IB not calculation double margin,
when trading pairs, which don't contain the base currency?

Example, if base currency is USD and you trade long EURGBP,
margin is needed for +EUR and -GBP.

In this case margin is doubled and the effective leverage is only 25:1.

This may help a few of us.

Thanks
Joerg
 
Quote from taboni:
Joerg you are saying that the trades were done on Wednesday but weren't broken until Friday?? This doesn't make alot of sense to me. I would have thought this sort of thing would occur immediately or at least within a couple of minutes of the bad trades going through, not 2 days later and certainly not after the close of business which would leave you exposed over the weekend. I hope IB makes good on this to you as this would leave a very bad taste in my mouth.
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Exactly this happens.
The price was so far away from fair price ( over 3% !),
that I immediatly closed the position and corrected the data in my Gloabal server.
Another (expensive) problem occours, that my autotrading strategies get completly mixed up by the failed data/trade.

No fun at all, either on wednesday when it happend and take me hours of sleep.
And themail and trade bust on friday after market,too.
The whole weekend i was praying, that nothing happens on EURGBP to get rid of the position Sunday nigt at open.

Joerg
 
JLarsen,

I have two questions.

1. What day and time did these erroneous trade occur?

2. What order type did you have that filled erroneously?

I'm asking because I had an erroneous trade (Both position entry and exit) which occured on Friday, April 20th around 14:00 EST in the EUR/USD. The entry order was a Stop limit. The exit a stop. I scheduled to be compensated for the loss but I'm just curious to see if it is a recent, isolated problem. Because of it, I stopped leaving orders on IB servers after 13:00 EST. NO biggie since I now only trade Forex from 07:00 to 13:00 EST anyway.
 
Quote from The Gambler:

i have only 1 account for forex (won't say where). I haven't used IB for forex yet, only other trading. I would if the margin were better. I am looking around, not happy with my current forex broker
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IB is great for trading Forex. High liquidity, tight spreads, low commission and many order types to facilitate various strategies that you couldn't otherwise do at most Forex dealers including Oanda.

Yeah, the 50:1 margin isn't the greatest but I predict that it's only a matter of time before most Forex retail brokers and dealers adopt this as Forex daytrading losses in the retail arena begin to mount up. Just think about what happened with Stocks after the daytrading boom of the late 90's. Account mins are $25k to day trade stocks.

What would be nice is if IB had a tiered margin structure like if you have over $x in your account, then 100:1. Not sure how they would work in their protection though. The thing is, IB is not a dealer, but a broker. A dealer can manage the risk because, well, they're trading against you. So risk actually works in a dealers favor. IB being a broker doesn't trade against you so their risk could be dramatic if some freak move occurs against you and by the time they issue and execute a margin call, there aren't enough funds in your account to cover.
 
Quote from ddunbar:

1. What day and time did these erroneous trade occur?
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The peak happens Wednesday 17:30 seconds after the
IB maintainance time ended and IDEALPRO opends again.
Sure that the plattform was a 'startup' issue.

Quote from ddunbar:

2. What order type did you have that filled erroneously?
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I always place LMT orders.

My autotrading implementation always pace BUY order at current ASK and Sell orders at current BID price.

Joerg
 
bs, don't even think 'bout it; if ib lowers margin req for fx i, like many others will take our biz elsewhere....not a chance am gonna take da risk of me funds bein' wiped out cuz of some of u blowin' up big time; safety of me money is of upmost importance to me and primary concern...i chose ib mainly cuz of da slightly higher margins req compared to other brokers'n'i think it is very smart of 'em to keep it that way.

stp blabberin' 'bout this idiotic request; u don't need that insane leverage anyways.
 
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