And how do you foresee a market freefall ???
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Does IB take responsibility? An amazing story
- Thread starter Option Trader
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Another thing;
When do IB have to make good their margin with the clearing house ? I bet it isn't real-time !
When do IB have to make good their margin with the clearing house ? I bet it isn't real-time !
Quote from Profitaker:
And how do you foresee a market freefall ???
My statement didn't require precognition. My point was to state that a lot can happen in 10 minutes. Leave enough on the table to account for variation margin. Problem is, 90% of the trader population are degenerate gamblers.
Until now IB had some sympathizers.Quote from IBj:
The changes will be made as soon as possible and will be released without additional explicit notice as you are now informed. You can expect the change to go in no earlier than tonight but more likely over the next weekend.
I do not know how long the improved margin model will take to insert but you should ensure your account has enough capital to cover a margin requirement of :
boxMargin = MAX(1.02*markedToMarketPositionValue,strikeDifferential)
Maybe you can translate this into simple English with an example.Quote from IBj:
I do not know how long the improved margin model will take to insert but you should ensure your account has enough capital to cover a margin requirement of :
boxMargin = MAX(1.02*markedToMarketPositionValue,strikeDifferential)
Quote from Option Trader:
Until now IB had some sympathizers.
We will notify other clients who have affected positions. As you are already notified with the explicit formula, there is no additional point to notify you again, is there?
example:
strike difference = 10 points
market prices the box at 10.5
margin (in points) will be
=MAX(1.02 * 10.5, 10)
=MAX(10.71,10)
=10.71
margin in $$ = contractMultiplier * positionSize * 10.71
Riskarb
Even the most conservative trader, who pays attention to margin requirements, would fall foul if he was on the wrong side of a market free-fall.
I agree it's wise not to margin the hilt, but margining for a market-freefall is a bit much, IMO. Depends what we mean by free-fall.
If I hit margin I have several choices;
Stump up cash
Buy cover
Liquidate
And I need more than 60 seconds to decide what to do, most traders would. So I'm happy to pay a little more for a broker that gives me those choices, within a reasonable time frame.
What's the rush with IB liquidating ? Just when do <i><b>they</b></i> (IB) need to make good their margins with clearing ? Not real-time I bet !
Which camp are you BTW ?
Even the most conservative trader, who pays attention to margin requirements, would fall foul if he was on the wrong side of a market free-fall.
I agree it's wise not to margin the hilt, but margining for a market-freefall is a bit much, IMO. Depends what we mean by free-fall.
If I hit margin I have several choices;
Stump up cash
Buy cover
Liquidate
And I need more than 60 seconds to decide what to do, most traders would. So I'm happy to pay a little more for a broker that gives me those choices, within a reasonable time frame.
What's the rush with IB liquidating ? Just when do <i><b>they</b></i> (IB) need to make good their margins with clearing ? Not real-time I bet !
I disagree. It's 100% ,but 10% delude themselves.Quote from riskarb:
Problem is, 90% of the trader population are degenerate gamblers.
Which camp are you BTW ?
BTW, does THIS constitute notice to ALL of your customers? Or each trader has a different cutoff date starting with my partner?
Quote from Profitaker:
Riskarb
Even the most conservative trader, who pays attention to margin requirements, would fall foul if he was on the wrong side of a market free-fall.
I agree it's wise not to margin the hilt, but margining for a market-freefall is a bit much, IMO. Depends what we mean by free-fall.
If I hit margin I have several choices;
Stump up cash
Buy cover
Liquidate
And I need more than 60 seconds to decide what to do, most traders would. So I'm happy to pay a little more for a broker that gives me those choices, within a reasonable time frame.
What's the rush with IB liquidating ? Just when do <i><b>they</b></i> (IB) need to make good their margins with clearing ? Not real-time I bet !
I disagree. It's 100% ,but 10% delude themselves.
Which camp are you BTW ?
You're continuing to misunderstand my point related to the "10 minute rule" as defined. No worries. I prefer my retail broker to have safeguards in place which reduce my broker's debit risk. Anyone remember Steve Fossett?
We're all gamblers. You're not? Must be comforting to be playing with so much edge.
Quote from IBj:
We will notify other clients who have affected positions. As you are already notified with the explicit formula, there is no additional point to notify you again, is there?
That is NOT called AUTOMATING!
How suddenly are you making individual rules for each customer??? That totally contradicts your corporate philoshophy which was your whole excuse for the liquidation!!
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