ES Journal - 2019/2020
- Thread starter Buy1Sell2
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Bingo.
Its so crowded now... look at B1, his long call is down almost 15%. Down another 3% as I type.
The damage this is gonna do in the U.S.'s big oil states is gonna be huge. Texas has a strong economy, but it'll be interesting to see how this pans out. ND, WY, MT.... its gonna be ugly. If one ever wanted to buy a house in the middle of nowhere and get away from it all.... start shopping out there later this summer cause I have a feeling custom homes will be going for less than $70/sqf.
I think he's pullin' your leg. IB is 4:1 intraday on stocks. Pretty sure its a fed thing too. Reg-T or something like that. I'm 100% sure you don't get 6X at any brokers on stocks.
I never did the math on futures though intraday... I always have more than enough, but they will shut you out overnight. That's happened to me on RB.
EDIT:
IB's website:
Determining Buying Power
In a margin account, buying power is increased through the use of leverage provided by the broker using cash as well as the value of stocks already held in the account as collateral. The amount of leverage depends upon whether the account is approved for Reg. T margin or Portfolio Margin. Here, a Reg. T account holding $10,000 in cash may purchase and hold overnight $20,000 in securities as Reg. T imposes an initial margin requirement of 50%, which translates to buying power of 2:1 (i.e., 1/.50). Similarly, a Reg. T account holding $10,000 in cash may purchase and hold on an intra-day basis $40,000 in securities given IB’s default intra-day maintenance margin requirement of 25%, which translates to buying power of 4:1 (i.e., 1/.25).
Fully agree with you. It worries me though. I just cannot comprehend stocks like TSLA are near $700 again, in these times, with factories not producing and a massive decline in sales. It's all FOMO on top of FOMO. Fundamentals, let alone valuations, don't matter anymore. It reminds me of the crypto-craze end of 2017. You cannot get a clearer sign we're in a bubble. It deflated a bit, but is blowing up again. When it really bursts, maybe only very far in the future, it will be ugly though...
Portfolio Margin
H I G H L I G H T S
Under SEC approved Portfolio Margin rules and using our real-time margin system, Interactive Brokers customers are able in certain cases to increase their leverage beyond Reg T margin requirements. For decades margin requirements for securities (stocks, options, and single stock futures) accounts have been calculated under a Reg T rules-based policy. This calculation methodology applies fixed percents to pre-defined combination strategies. With Portfolio Margin, margin is based on the largest potential loss found by valuing the portfolio over a range of underlying prices, and volatilities. It is available for all US stocks, OCC stock and index options, and US single stock futures positions. At this time, it is not available for US commodities futures and futures options, US bonds, or forex positions, but US regulatory bodies may consider inclusion of these products at a future date.
Portfolio or risk based margin has been employed for many years in both commodities and many non-US securities markets, with great success. Depending on the composition of your trading account, Portfolio Margin can require less margin than under Reg T rules, which translates to greater leverage. Trading with greater leverage involves greater risk of loss. Of course for some accounts with risky positions, Portfolio Margin can require more margin than under Reg T. That’s the point of Portfolio Margin, for margin requirements to more accurately reflect the actual risk of the positions in an account. It should be noted that for customers with highly concentrated accounts, Portfolio Margin may calculate higher margin requirements under Reg T. One of the main goals of Portfolio Margin is to reflect the lower risk inherent in a balanced portfolio of hedged positions. Conversely, Portfolio Margin must assess proportionately larger margin for accounts whose positions are concentrated in a relatively small number of stocks.
ortfolio Margin Eligibility
An account must have at least USD 100,000 (or USD equivalent) in Net Liquidation Value to be eligible for a Portfolio Margin account. Existing customers may apply for a Portfolio Margin account through Account Management/Trading Permissions at any time and your account will be upgraded upon approval. New Interactive Brokers customers can apply for a Portfolio Margin account during the registration system process. It should be noted that if your account drops below USD 100,000 you will be restricted from doing any margin-increasing trades. Therefore if you do not intend to maintain at least USD 100,000 in your account, you should not apply for a Portfolio Margin account.
New IB customer accounts requesting Portfolio Margin will have Reg T rules in effect until their accounts are approved for Portfolio Margin. This may take up to 2 business days (under normal business circumstances) after initial account approval. Existing IB customer accounts will also need to be approved and this may take up to two business days after the request. Both new and existing IB customers will receive an email confirming approval.
Those institutions who wish to execute some trades away from Interactive Brokers and use us as a prime broker will be required to maintain at least USD 500,000 (or USD equivalent).
Really doesn't seem to want to go down so Trying a swing long in my old spreadbet account.
The Last one gave me 100 points profit.
I'll risk most of that profit on this trade lol
spreadbet account - L 2808 - target 2950 ish (still daytrading both ways)
The Last one gave me 100 points profit.
I'll risk most of that profit on this trade lol
spreadbet account - L 2808 - target 2950 ish (still daytrading both ways)
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ss 2817
Stop at 22
Stop at 22
I think what a lot of people are missing, or choosing to not talk about as the indexes appear to want return to their prior levels, is that all this stimulus isn't going to juice the economy.
Its like a soldier in a foxhole desperately applying a battlefield dressing to cauterize a wound that is gonna kill his buddy... in the hopes things will subside and his buddy will hang on long enough to get to a real medical facility.
In our case, it appears the dressing has in fact saved us, but the road to recovery is going to be long and is yet unknown. And tbh, our friend is not off the battlefield just yet. He's laying in the back of a jeep on his way to a field hospital, but the shelling hasn't stopped, and they are still near the front-lines.
Honestly, I think we'll see lots of chop, lots of upspikes, and perhaps not a one or two day crash resulting in say a 7% drop, but I do think we will start trending down. I think the people with the real brains that make the big decisions know this.
I would bet anything.... in secret Chairman Powell knows, and has resigned himself to the reality that the only "best" solution to this mess going forward is to do everything in his (their) power to ensure its a slow and steady decline.... not a crash. You can pop a balloon, or you can let the air out slowly.
My intuition tells me that the powers that be are way ahead of what all of us are hearing via the never ending multitude of opinions etc, and they have already resigned themselves to the fact that the only solution now is a slow and orderly contraction of our economy going forward for the foreseeable future.
Sure there'll be spikes, but the trend is down for at least 6 months. There's not going to be any new ATH's. That's just fools talking sh*t that have no clue about the reality of what's really going on with 70% (probably 80% now) of our populace.
But we shall see.
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