IB intraday margin requirements changed.

[OldTrader]

Quote from notouch:

What if a client gets a margin call on a position they opened last week which they wouldn't have got if it wasn't for IB's new margin rules? What if that client makes a loss but if it hadn't been for the new margin rules they would have made a profit? IB needs to give more notice of these things instead of just coming out with it on a Monday morning.

You and droskill need to learn how to read. This applies to INTRADAY margins, not overnight margin. And by the way, they don't need to give you "notice"....they need to protect themselves from potential risk in a highly volatile climate.

OldTrader

 

[OldTrader]

Quote from abxs:

Nevertheless if you traded say 100 lots before, you'll now need twice the account size to compensate. Unless you trade 50 lots instead and on the larger scale this could affect volume (imho)

You only need twice the account if you were using $1750 margin. I don't know anyone trading 100 lots with $1750 per....do you?

OldTrader

 

[droskill]

Quote from OldTrader:

You and droskill need to learn how to read. This applies to INTRADAY margins, not overnight margin. And by the way, they don't need to give you "notice"....they need to protect themselves from potential risk in a highly volatile climate.

OldTrader

Dude - I read the notice - and yes, I know a few people that trade that size lots intraday. And I also didn't imply they "needed" to give notice - I just found it interesting - nothing else.

 

[OldTrader]

Quote from droskill:

Dude - I read the notice - and yes, I know a few people that trade that size lots intraday. And I also didn't imply they "needed" to give notice - I just found it interesting - nothing else.

Note: I said people that trade 100 lots with $1750 each margin.

OldTrader

 

[brownsfan019]

There's still plenty of brokers offering $500 margins if that becomes an issue. Hell, I think Global has a $300 margin account as well.

 

[abxs]

Quote from OldTrader:

You only need twice the account if you were using $1750 margin. I don't know anyone trading 100 lots with $1750 per....do you?

OldTrader

Actually I do know someone

Agreed not a whole lot of people (and not myself for the record) but it's not unrealistic at all if you look at the T&S orders passing through on the ES.

 

[abxs]

Quote from OldTrader:

You and droskill need to learn how to read. This applies to INTRADAY margins, not overnight margin. And by the way, they don't need to give you "notice"....they need to protect themselves from potential risk in a highly volatile climate.

OldTrader

I agree they don't NEED to, but at least they could've given a notice... the changes in volatility did not start Friday but have been for last couple of weeks now.

Also, their webpage isn't updated with the new margin requirements yet. It just gives me the impression they acted in a rush.

 

[abxs]

Quote from whitster:

the biggest moves in the futes are ALWAYS forced liquidations

when you see moves of over 100 pts in a matter of minutes - rest assured - others are feeling massive pain

every dollar marked to my account is somebody else's loss in futes (zero sum market).

IB is not stupid. brokers have to price risk in a way that makes them money

volatility has massively expanded . traders who have adapted are LOVING this market (this is the best market for futures i could ever imagine. loving it).

those who are used to playing the means regression game with small moves and big size are getting slaughtered.

good.

Not much adaptation needed in my plan... I justed change my stop & target based on the volatility and small down positions size obviously. Best to stay to a fixed % risk exposure for each trade imho.

 

[petteri]

I wonder if IB would have increased overnight margin for new positions as well if IB had possibility change overnight margin without affecting current positions?

I think 500$ margin bargains for e-minis will be history really soon.

 

[notouch]

Quote from OldTrader:

You and droskill need to learn how to read. This applies to INTRADAY margins, not overnight margin. And by the way, they don't need to give you "notice"....they need to protect themselves from potential risk in a highly volatile climate.

OldTrader

You need to learn to relax old man. It's possible that an intraday spike could take out a swing position that would not have been liquidated if the old margin requirements were in place.

I agree with the poster saying it looks like they acted in haste. Why suddenly make the decision this Monday morning when the volatility has been with us for 2 weeks? A week's notice would have given IB clients the opportunity to deposit more money in their trading accounts if necessary. It says a lot for the mentality of those who run IB that they just drop this decision on their customers on a Monday morning.