IB Margin Changes
- Thread starter gtcharlie
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Def,
I think IB costumers deserve to know if Timbar Hill has been profiting from these auto liquidations but you keep avoiding to answer...
P.S if you are an IB costumer and want to know if Timbar Hill has been making profits on their clients back, post here to encourage "Def" to answer the question.
Jayre:
I haven't traded without specific risk parameters and never even close to maximum allowable margin limits in many years. As a result I've never seen an auto-liquidation in any account of my own.
However, that is what the agreement I signed says can happen. I don't know how you phrased the question to Infinity, but they do auto-liquidate, The Hoffman $312K loss posts here at ET and a number of other sites are true. A friend was a subscriber and saw it happen. Hoffman had no idea it was about to happen. He took a major hit and admits it in his YouTube sales pitch videos, though the amount is never mentioned. The TTM guys also admit it. They had a major campaign to get people back into the TTM subscription trading room after the loss. If you search for Hoffman and $300K or $307K or $312K, you'll find a number of threads where the liquidation (blowout) is discussed.
As to IB making money on auto-liquidation and DEF being able to say it never happens :- He cannot make such a statement as Timber Hill might be a counter-party to a liquidating trade. But a lot depends on what is being liquidated. It is nearly impossible in futures as the exchanges queue standing orders and the markets have sufficient depth that Timber Hill would have to be at the front of the queue all the time, obviously impossible. In stocks and options there is a higher probability, but it is still very small. Timber Hill is a market maker, and could be the counter-party. Remember that a liquidation is not necessarily a sale, it could also be a buy, if shorts were being closed out. So what you are implying is that Timber Hill always buys (or sells) against a liquidation, and then sells (or buys) whatever they just traded, at a profit. I suggest that they just cannot do so (nor are they even trying as you feel they are).
I'd call Infinity again and ask to speak to Jim Cagnina. Ask him about auto-liquidation.
Jack
I just want to thank jayre and options12 for the comedy. You guys have a nice future as congressmen ... make accusations, ask leading questions (and then answer them) and take no responsibility for your actions (and assume nobody should take responsibility for their actions). You guys rock!!!
If you are an IB account holder you signed the agreement allowing them to auto-liquidate. If you think they are doing it in error that's an issue, then go find a lawyer and get it sorted out in court (good luck with that!). Otherwise shut up or go back to the yahoo forums.
If you are an IB account holder you signed the agreement allowing them to auto-liquidate. If you think they are doing it in error that's an issue, then go find a lawyer and get it sorted out in court (good luck with that!). Otherwise shut up or go back to the yahoo forums.
Well I guess I'm just one of this group of obviously unhappy, dissatisfied customers: (IB's end of Oct 2011 statistics)
186 thousand customer accounts, 22% higher than prior year and 1% higher than prior month.
489 thousand Daily Average Revenue Trades (DARTs), 30% higher than prior year and 4% lower than prior month.
Ending customer equity of $25.5 billion, 28% higher than prior year and 9% higher than prior month.
Ending customer margin loan balances of $6.8 billion, 10% higher than prior year and flat to prior month.
Ending customer credit balances of $17.2 billion, 26% higher than prior year and 4% higher than prior month.
613 annualized average cleared DARTs per customer account.
I don't know how many auto-liquidations were included in the 489,000 DARTS.
Jack
186 thousand customer accounts, 22% higher than prior year and 1% higher than prior month.
489 thousand Daily Average Revenue Trades (DARTs), 30% higher than prior year and 4% lower than prior month.
Ending customer equity of $25.5 billion, 28% higher than prior year and 9% higher than prior month.
Ending customer margin loan balances of $6.8 billion, 10% higher than prior year and flat to prior month.
Ending customer credit balances of $17.2 billion, 26% higher than prior year and 4% higher than prior month.
613 annualized average cleared DARTs per customer account.
I don't know how many auto-liquidations were included in the 489,000 DARTS.
Jack
Jack, you are an amazing guy... earlier when I asked Infinity clients about Infinty's liquidation policy, you said that I have a problem because I should have called infinity and find out. Now that I followed your advice and called infinity,you say "you don't know how I phrased the question to Infinity"-- a "freind" that was a subscriber saw it happen-- Youtube etc, and also that the agreement syas it "can" happen....and you finish with a sugestion I should call infinity again...
Jack, do me a favor, call infinity tomorrow, ask them what is the "standart process" how they handle margin deficits? Period. And then post the answer tomorrow here. In the mean time if any infinty client ever had an instant same day liquidation without notice please share your story.
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