Isn't that a blanket statement? That's like what my almost-mother-in-law said, "trading? that's a scam, isn't it"...just because most trading related news are about scams. Shouldn't really judge the individual based on what the group is like, that's all I'm saying.
Customers of Interactive Brokers file class action complaint over management of portfolio margin acc
- Thread starter ajacobson
- Start date
Isn't that a blanket statement? That's like what my almost-mother-in-law said, "trading? that's a scam, isn't it"...just because most trading related news are about scams. Shouldn't really judge the individual based on what the group is like, that's all I'm saying.
Guys, can you also put me down for this list, I'd also like a call before a market meltdown. It would be very helpful for my bottom line. Much appreciated, thanks!
Robert Morse
Sponsor
I can't say I'm an EXPERT at PM. That said, I do have a very high level of knowledge of PM as I worked on a software project at my old firm building a Risk/PM calulator. I was the beta tester looking for accuracy and errors. I looked through the FINRA FAQ and the OCC website. I can't find any reference to ETNs not being PM eligible. Every clearing firm, for their own purposes, can remove symbols or products from the PM calculation and add whatever measures they want for risk, but you can't make something PM eligible when it's not. When I enter ETNs into the OCC calculator, they produce a requirement consistent with PM.
http://www.finra.org/industry/portfolio-margin-faq
https://www.theocc.com/risk-management/cpm/
https://apps.theocc.com/pmc/pmc.do
Bob
http://www.finra.org/industry/portfolio-margin-faq
https://www.theocc.com/risk-management/cpm/
https://apps.theocc.com/pmc/pmc.do
Bob
All I'm saying is, if IB is the house and is knowingly extending the credit, why let the gambler borrow an excessive amount? And then act like a maniac whenever the VIX spikes... As if IB/Timberhill doesn't know that naked vxx call options are dangerous, especially in a low vol environment? IMHO, neither party acted in good faith. But to each his own.
Robert Morse
Sponsor
All margin accounts have risk. PM accounts have more than reg-T. Each clearing firm needs to make a business decision as to what they want to offer and when commissions and fees are worth those revenues. If you want to be the business of offering margin accounts, you have to have some acceptable level or not make money. You can't de-risk completely and expect revenues.
Bob
IB manages risk by realtime adjustment to conditions.
Traders should be doing the same thing , but many of them are imbeciles so they dont
Traders should be doing the same thing , but many of them are imbeciles so they dont
Not imbeciles, infantiles. By letting the IB autoliquidation process handle their risk, they have a father-figure they can blame for their own failings. "It's IB's fault" is like "I had a bad childhood."
I am a happy customer of IBKR and I do use margin. Among the lawsuits I have read against IBKR, ALL of them involve options. So, if you want to be on the safe side when using margin, avoid using leverage on options. Options are already leveraged instruments. Why add leverage on top of leverage?
I like IBKR autoliquidator. It is like a free risk manager provided by the broker for retail investors who use leverage. Good for them, good for us (at least most of the time).
Robert Morse
Sponsor
I was told by a member here that they lost 7 figures from a liquidation of leaps. It was system error. Why would anyone want the broker to act without the opportunity to reduce yourself.