How about if IB starts using reasonable daytrading margin on mini futures? They have the technology obviously, but they lost me as a customer because I literally cannot bet the farm when the time comes, as it does a couple times a month.
IB improvements
- Thread starter Babak
- Start date
def
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braindonor,
don't take this the wrong way but I would believe the reason it is not offered is precisely for what you want to do. If you take excessive risk and the market gaps against you, the firm does not want to be caught in the position of having to cover client margin. It is a safety net for all. Given the margin rate on futures, I guess it is the belief that there is ample leverage already in the contract.
don't take this the wrong way but I would believe the reason it is not offered is precisely for what you want to do. If you take excessive risk and the market gaps against you, the firm does not want to be caught in the position of having to cover client margin. It is a safety net for all. Given the margin rate on futures, I guess it is the belief that there is ample leverage already in the contract.
Def,
I almost always agree with what you reply to this list, including IB's reservation to implement DDE link to Excel. But not this one, the daytrading margin policy.
IB's proud of its complete computerization. Auto liquidation without margin call. "Market gaps" you mentioned above is a real issue, to the overnight or over-session positions, but not so much an issue to the daytrading positions. For the current margin rate, it's 86 pts for ES, 272.5 pts for NQ, 1140 pts for Hang Seng Index. If 50% daytrading margin rate adopted, it's 43, 136, and 570 pts respectively. And even if 25% of full margin to maintain a daytrading position (you may choose 35% if that makes you more comfortable), it's still 21.5, 68, 285 pts for IB to liquidate the position. Not enough? Notice that this range is completely for IB to offset a position once the threshold gets hit. Even a market panic/shock will allow minutes to go this far. Remember that we are talking about intraday/intrasession scenario. The real challenge is how robust IB's platform is to execute auto-liquidation. And we are talking about the most liquid contarcts, ES, NQ, Hang Seng Index, DAX, Euro STOXX 50, CAC 40, and FTSE 100. No a/c/e Dow Jones mentioned. As to if the leverage is too excessive, it's a two-edged sword that's up to the traders. Reasonable money management is essential to survive, but we want the sword there once we need it.
And by definition, all daytrading positions must be squared out before a certain point before the end of the day or the session (HK trades two sessions a day, currently). Of course it's fully reasonable to exclude any pre-market, "night session", or illiquid markets/contracts for daytrading policy adoption.
With the coming of multi-currency futures account (Def, when will it be availabe?), the daytrading margin policy is even more essential because I do doubt the SPAN System or its like mechanism will cover or be adopted across the entire nations/instruments that IB allows for trading. As you know we have about three hours overlaped for active ES, NQ, DAX, Euro STOXX 50, CAC 40, and Footsie trading.
def
Sponsor
scritrader I don't disagree totally with your point (i'm not the policy maker on this but I am trying to speak on how i think the firm thinks). However, intraday shocks can happen - we unfortunately just had one. Yes, the software can handle auto-liq very well. It can be set by time etc. Perhaps lower margins will be allowed intraday in the future (technically they are not allowed in certain markets. HK is one but there are so many loopholes many firms offer it - at least here, we do not plan to). Right now, I don't think that is the direction the firm is taking. (maybe tomorrow I'll be eating my words).
As for multi-currency futures they will be coming shortly. I've been asking for a definative date but haven't rec'd a reply yet. Full Span implementation is about 1-2 weeks away and I imagine multi-currency will shortly follow as there has been great demand.
As for multi-currency futures they will be coming shortly. I've been asking for a definative date but haven't rec'd a reply yet. Full Span implementation is about 1-2 weeks away and I imagine multi-currency will shortly follow as there has been great demand.
hi
sorry if the message is too long, but I thought for better understanding, I 'll tell the whole story.
yesterday I wanted to cover a short trade with best exe, but it kept blue and didnt change to green, ok I canceled and it changed to pink and stayed pink
ok, I tried a second time! same story, now I am with 2 canceled orders in pink and not getting red.
I contacted the online help, and the answer was that redi was down and I should know it, because of the bulletin I recieve! hmm
but I didnt get a bulletin, that was the fact. IB helper told me I should go to the homepage and look under system status.
ok I said thanx and bye
I dont think it does make a lot of sense, to go before every entry and exit, to the IB page, and take a look, if there was a bulletin!!!!!!!!!!!! strange help, no?
I called the IB hotline in us, and the helper there agreed , that I should get the bulletin with the newest tws vesion, that I use.
he told the sofware department to send out a test bulletin and it worked. fine hopefully it will in future!!
ok now to the point:
why, if IB knows that REDI is down, are they sending the order to REDI with best exe?? is there no way to take redi immediately out of the routing?
thanx for listening
eli
sorry if the message is too long, but I thought for better understanding, I 'll tell the whole story.
yesterday I wanted to cover a short trade with best exe, but it kept blue and didnt change to green, ok I canceled and it changed to pink and stayed pink
ok, I tried a second time! same story, now I am with 2 canceled orders in pink and not getting red.
I contacted the online help, and the answer was that redi was down and I should know it, because of the bulletin I recieve! hmm
but I didnt get a bulletin, that was the fact. IB helper told me I should go to the homepage and look under system status.
ok I said thanx and bye
I dont think it does make a lot of sense, to go before every entry and exit, to the IB page, and take a look, if there was a bulletin!!!!!!!!!!!! strange help, no?
I called the IB hotline in us, and the helper there agreed , that I should get the bulletin with the newest tws vesion, that I use.
he told the sofware department to send out a test bulletin and it worked. fine hopefully it will in future!!
ok now to the point:
why, if IB knows that REDI is down, are they sending the order to REDI with best exe?? is there no way to take redi immediately out of the routing?
thanx for listening
eli
def
Sponsor
eli,
agree, but i'm not sure how simple it is or how much time it takes to change a link. but I will bring it to the attention of the approriate people. i also have a feeling that if a bulletin is sent while you are logged out you will not be able to see it on the screen. This is something that I will make an effort to change.
agree, but i'm not sure how simple it is or how much time it takes to change a link. but I will bring it to the attention of the approriate people. i also have a feeling that if a bulletin is sent while you are logged out you will not be able to see it on the screen. This is something that I will make an effort to change.
Def, Babak
did you get a chance to read this and forward ?
any info would be appreaciated..
IB market depth is very slow compared to Island or CME
[see http://207.121.190.247/WebQuote/fortune50a.html ]
* Is it possible to increase the poll speed of IB JTWS so market depth is refreshed more frequently. If the programmers can do it, it would be fantastic.
neo
did you get a chance to read this and forward ?
any info would be appreaciated..
IB market depth is very slow compared to Island or CME
[see http://207.121.190.247/WebQuote/fortune50a.html ]
* Is it possible to increase the poll speed of IB JTWS so market depth is refreshed more frequently. If the programmers can do it, it would be fantastic.
neo