IB intraday margin requirements changed.

[kiwi_trader]

Quote from mij:

When do you think they'll switch it back to the original margins?

They will switch back as soon as they think "normal" volatility has resumed. They don't want to stay high because it makes them less competitive but at the same time they don't want to risk their business (and our accounts) by letting lots of idiots run up losses that blow their accounts.

 

[osorico]

So let me get this.
I should use IB as my FUTURES broker because...

• Intraday margins are virtually the same as overnite maintenance.
  From customer standpoint, protection from self.
  From IB standpoint, exposure risk is reduced.
• Trades entered and executed pre-market, even by 1-minute require full overnight margin.
  From customer standpoint, protection from self.
  From IB standpoint, exposure risk is reduced during the entire pre-market.
• Auto position closing based on full overnight margin requirements starting at approx 3:45 EST.
  From customer standpoint this is good because?
  From IB standpoint, exposure risk is reduced before exchange bookkeeping and actual exchange requirements are determined.
• Data feed is not tick-by-tick.
  From customer standpoint, the feed is (supposedly) constant in all(most) market conditions.
  From IB standpoint, less infrastructure required.
• Key-fob security device required to login.
  From customer standpoint, increased account security at possible expense of potentially missed trade opportunities.
  From IB standpoint, all account security risk lays squarely with the customer.
• No interest on first 10K of account size.
  From customer standpoint this is good because?
  From IB standpoint, a profit center.
• Published commissions and fees.
  From customer standpoint, no surprises, but maybe not the best choice dependent on instrument(s) traded.
  From IB standpoint, ease of administration. No negotiations regardless of account size or volume.
• Large offering of foreign market instruments.
  From customer standpoint, terrific!
  From IB standpoint, first to market.

Looks a bit one-sided imo

Good trades to all
Osorico
Not an IB client, past or present. No axe to grind or praise to give.

 

[ji yuu jin]

i just hope that :

one: it is not going to become permanent like what kiwi trader said. this is the first time i'm experiencing this kind of thing.

two: that IB will resume intraday margin to the usual margin say within 2 weeks time. then again, we never know if this volatility
will continue for another 2 weeks. i dun think so tho ...

 

[buzzy2]

Quote from 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.

$300 margin? What a joke. Go long ES... market drops 6 points in seconds ... oops money gone.

 

[JamesVU2000]

Couldnt agree more. Fading everything back to value areas or the vwap was so boring. Cut your size in half and trade away.

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.

 

[buzzy2]

What's IB policy when a customers balance goes negative?

I guess recent huge swings made prompt liquidation very difficult, causing a lot of daytrading accounts going red.