I do understand about the minimum quantities and see them at fidelity as well. However, I've never noticed a minimum quantity that's larger than the quoted bid or ask size. It wouldn't make a whole lot of sense for a quote system to show an ask size of 1mm with a minimum of 10mm. That's why I specified that I was trying to lift the entire quantity offered and couldn't do it.
Haircut of Canadian treasury bills used as collateral
- Thread starter M.W.
- Start date
You again misunderstood my point on "small size", purposely or not.
Nobody made it about the size on the offer, until you did. Are you trading in lots of 100,000? If not then you trade "small size" and don't get the same priority and attention than larger orders. Has nothing whatsoever to do with the size on the bid or ask. I explain IN MUCH DETAIL why fills are slow, go back to one of my previous posts and re-read. The quotes that are shown are REAL, but it is an OTC market, the dealer can fill you whenever it pleases them.
I have been with IB since 2001, have gone through an uncountable number of hoops, issues, bugs, innovations, changes, .... have you? If then I am surprised you STILL don't comprehend how t-bill orders are handled by IB....
Nobody made it about the size on the offer, until you did. Are you trading in lots of 100,000? If not then you trade "small size" and don't get the same priority and attention than larger orders. Has nothing whatsoever to do with the size on the bid or ask. I explain IN MUCH DETAIL why fills are slow, go back to one of my previous posts and re-read. The quotes that are shown are REAL, but it is an OTC market, the dealer can fill you whenever it pleases them.
I have been with IB since 2001, have gone through an uncountable number of hoops, issues, bugs, innovations, changes, .... have you? If then I am surprised you STILL don't comprehend how t-bill orders are handled by IB....
I think they're related because both are about government securities used as collateral for other trades.
My assumption that you don't trade futures is based on the fact that you don't seem to understand how futures margin works.
Oh goodness, my last attempt to boil it down to the absolute basics:
IB offers trading in t-bills in multiples of 1,000 dollars. This is considered "small size". Unless the order exceeds a certain notional value (unrelated to the volume shown on the offer) it is probably put on the back-burner by the dealer or an algorithm and attended to with delayed effect. It is an OTC market, they don't have an obligation to fill you immediately. My last comment on this to you, what a monumental waste of time...
IB offers trading in t-bills in multiples of 1,000 dollars. This is considered "small size". Unless the order exceeds a certain notional value (unrelated to the volume shown on the offer) it is probably put on the back-burner by the dealer or an algorithm and attended to with delayed effect. It is an OTC market, they don't have an obligation to fill you immediately. My last comment on this to you, what a monumental waste of time...
Are you just determined to fight with people? I was pointing out that your post was helpful.
The fact that it happens with larger sizes was additional info I thought was helpful too.
Yes, I was trying to lift the entire ask size which was much more than $100k usd and didn't get filled.
Nowhere in this entire thread was there even a point made on the specifics of margin assessment, neither by me or others. The issue was on how the margin requirements can be satisfied, which in effect requires zero knowledge of how margin is assessed. You again made nothing but false assumptions.
You clearly demonstrated so far that you have no idea how IB manages the satisfying of margin requirements, nor how cash and t-bills are handled.
Despite my frustration in this conversation I still wish you good luck figuring it out. You had since 2006 (according to when you registered on this forum) yet still have not gotten it. I wonder why...anyway, good luck!
You clearly demonstrated so far that you have no idea how IB manages the satisfying of margin requirements, nor how cash and t-bills are handled.
Despite my frustration in this conversation I still wish you good luck figuring it out. You had since 2006 (according to when you registered on this forum) yet still have not gotten it. I wonder why...anyway, good luck!
Sorry, I see that I wasn't clear. I meant the cash balance in the futures account.
The cash in my IB futures account is less than the maintenance margin because my account includes long futures options. That cash is the part that's generating a negative spread. If IB worked like RJ Obrien, I would need to buy enough t-bills so the after haircut value equaled the cash balance.
Re:BobG
Ah ok, I see now. You are buying a bit more so that you have enough tbills AFTER the haircut. Makes sense, but its going to be a small issue overall. I don't know what the haircut is (if any) at IB, but at RJO its 95% and Advantage futures is 98%. Tradegoodstocks mentioned earlier that its also the same as the Tbill margin requirement (which is 99% for <6months and 2% 6-12 months). But I don't have anything directly from IB on that yet.
https://www.interactivebrokers.com/...hm=us&ex=us&rgt=1&rsk=0&pm=0&rst=101004110808
Ah ok, I see now. You are buying a bit more so that you have enough tbills AFTER the haircut. Makes sense, but its going to be a small issue overall. I don't know what the haircut is (if any) at IB, but at RJO its 95% and Advantage futures is 98%. Tradegoodstocks mentioned earlier that its also the same as the Tbill margin requirement (which is 99% for <6months and 2% 6-12 months). But I don't have anything directly from IB on that yet.
https://www.interactivebrokers.com/...hm=us&ex=us&rgt=1&rsk=0&pm=0&rst=101004110808
Looks like I'm not allowed to edit my post from yesterday?? I need to add 2 other brokers to the list that allow Tbills as futures collateral:
The list is now 4 brokers:
The list is now 4 brokers:
- Interactive Brokers - Unconfirmed Haircut - Bills work up to at least 6 Months (I haven't tried longer yet)
- RJO Futures - 95% haircut - Need to buy at auction for $95 (13 week, 26 week)
- Advantage Futures - 98% haircut, has overnight position capital charge, more expensive than RJO
- Lightspeed - does not allow overnight short option positions
Interesting thread about cash maintenance, something I have been very unfamiliar with. Could someone check if I understood correctly (more or less, and I am assuming here futures options and options on stocks work the same)?
I have a Euro account at IB Ireland. Trading mostly US options on stocks. I also get (according to IB advertisement, haven't checked myself) some interest rate on uninvested instantly available cash. Is it correct I could also just buy approved T-bills (earning the T-bill return), which will reduce my univested cash, but hardly reduced available margin for option trades? And since I have a Euro account, maybe even buy (or have to buy?) Euro denominated German bills with the same result? Or maybe I am way off, also very possible
I have a Euro account at IB Ireland. Trading mostly US options on stocks. I also get (according to IB advertisement, haven't checked myself) some interest rate on uninvested instantly available cash. Is it correct I could also just buy approved T-bills (earning the T-bill return), which will reduce my univested cash, but hardly reduced available margin for option trades? And since I have a Euro account, maybe even buy (or have to buy?) Euro denominated German bills with the same result? Or maybe I am way off, also very possible