Effective Monday, stocks with market cap under $100M will be non-marginable at IB

Wow, every day it's a new trading challenge with IB. Although I have quite a few smallcaps, I'm far enough below the margin level for this not to affect me right now, but it may limit my ability to make some easy money with any sharp drops in small caps in the coming weeks. Is IB expecting a crash this week? This rule change seems rather drastic. Hopefully they'll go back to normal margin rates in a few weeks.

Meanwhile, expect some margin calls Monday afternoon causing lots of volatility in thinly-traded smallcaps. Should be fun!
 
Quote from takestock:

Meanwhile, expect some margin calls Monday afternoon causing lots of volatility in thinly-traded smallcaps. Should be fun!
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:D
That's right!
That's one of the reasons why I am working on a complete list of those stocks.
 
WOW! From 25% to 100%.

Not saying I disagree regarding small caps, but why does IB NEED to outthink "official" rules, on a consistent basis, across all investment classes? Always for the safety of the client, of course.
 
Quote from EMRGLOBAL:

Get ready, this is just the start of the "restrictions" on
Intrad Day trading. The "Political Body" has it out for "Day traders" and Hedgefunds.

This action by IB is just them getting things under control before the full front attack comes from Washington.

It will be interesting to see where Intra-Day trading on the
Day trading Model ends up in a few months.
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Where will this end??

When nothing and nobody can no longer be trusted??

When society becomes a net loss will people then be happy??

This is a good song

http://www.youtube.com/watch?v=JYKWOXtWkzQ
 
What can you say. IB can see how its customers are positioned.

If too many are exposed to stocks that could go to near zero in a hurry, then it does not make sense to expose the firm to losses by margin addicts.

Take your high risk trades to Ameritrade or someone else that doesn't care.

You have to remember that IB is still mostly a PRIVATE firm, so it's the mans money, not some faceless stockholder.

TP is not Dick 'The Dick' Fuld
 
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