IB Margin Changes

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you can trade lots of garbage at IB. even chinese frauds and NFLX. maybe that makes them nervous, who can blame them .

Im upset I havent received my notice, I have 5 billion shares of one of those .000001 jobs to deal with.
 
Quote from given2trade:

What we're saying is:

1) An arbitrary rule on sub $250 million market caps is completely absurd. I can name you a dozens of large cap stocks that are infinitely more risky than my small cap value holdings.
2) They are not losing money by offering margin at these levels. My guess is they had 1 bad account and are acting as a result.
3) They could have offered more than 2 days before implementation. As you said, this isn't a game. I have major tax issues I'd have to deal with if I was forced to sell many of my positions.
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I guess you don't remember how many small cap stocks got absolutely bludgeoned during the 2007-2008 financial crisis.

No one is forcing you to be on margin. As an IB customer who only uses margin in very particular cases, I welcome any margin rules that they deem appropriate given the current environment. If you don't like them, then close your account.
 
Quote from sprstpd:

I guess you don't remember how many small cap stocks got absolutely bludgeoned during the 2007-2008 financial crisis.

No one is forcing you to be on margin. As an IB customer who only uses margin in very particular cases, I welcome any margin rules that they deem appropriate given the current environment. If you don't like them, then close your account.
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Agree with that IB is not made to use with margin, however chnaging rules quickly with little notice is not appropriate, neither making your money safer.
 
Quote from jayre:

Agree with that IB is not made to use with margin, however chnaging rules quickly with little notice is not appropriate, neither making your money safer.
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It is not appropriate in your opinion.
 
Quote from jayre:

Agree 100%. Would the IB micro cap rule
"adjusted for all the shares that are private and part of the partnership" when they calculate if a stock is a micro cap? Also how about small etf's can they use margin?
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Yah, small etf's are a great example. A new ETF with less than $250 million in assets that is extremely low risk (think short term govmt bond fund) would be non-marginable.

The entire rule change is pure lazy.
 
Quote from sprstpd:

It is not appropriate in your opinion.
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Isn't everything someone posts their opinion?

Man, the IB shills on here are hilarious. How anyone can step back and think this margin change is fair and/or good for their business is beyond me.
 
what happens when the mkt cap drops from 300mm to 240mm, and you have it on margin. Are you forced to puke it up?

how come no email here? is this a hoax? ;-)
 
Quote from given2trade:

Isn't everything someone posts their opinion?

Man, the IB shills on here are hilarious. How anyone can step back and think this margin change is fair and/or good for their business is beyond me.
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I find it funny that you think you know more than IB does about its own business. There is obviously a reason why they are doing this, even though it may seem bizarre to you. As an account holder, I find it reassuring, rather than concerning, that they are proactive with their margin changes.
 
Quote from stock777:

what happens when the mkt cap drops from 300mm to 240mm, and you have it on margin. Are you forced to puke it up?
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Good question. They say "Please note that this list is subject to periodic update and accounts holders are advised to utilize the 'Check Margin' feature within the TWS to confirm the margin requirement on any particular security. "

So yah, if your account has a few margin securities near $250 million you might find yourself liquidated at any moment they go sub $250 million because, as you know, a company below $250 million in market cap is very risky! There are few businesses in the world that can exist at that level. Most if not all will go bankrupt at some point.
 
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