IB raising intraday margin

[mde2004]

Quote from djxput:

to what?

Almost double due to many day traders losing big money getting chopped around. Bye bye elite traders losing money again. lmao.

 

[joesan]

Quote from sporky:

I got the notice as a flashing red bar on the top of TWS first thing monday. Seems to me one of the best places to notify clients is in your trading s/w, no?

You must be trading US or European products, yesterday in Asian time, there was no such flashing red bar or flashing bulletin, nothing ! Yeah, I mean, nothing ,nada , nanimonai , Shen Me Ye Mei You !!!


Aitsutachi wa nani wo yetteita ?! Zenzen wakaranai !

 

[AAAintheBeltway]

Quote from jimrockford:

I'm glad IB pays attention to risk control.

Irresponsible futures brokers who have low margin requirements can go bankrupt in the event of a large market event leaving customers unable to cover their trading losses. Such brokers will be on the hook to cover those debts. If such a broker goes bankrupt, and can't cover those losses, then guess who gets soaked: the non-defaulting futures customers. This means you.

So if you want to make sure you are protected from futures broker bankruptcy risks, you need to make sure that your broker has reasonably high futures margin requirements. Otherwise, you could lose it all when the broker collapses, even though your trades were totally profitable.

I don't know what OPM is mouthing off about. You are exactly right. In the event of a bankruptcy of a futures commission merchant, all customer funds are theoretically available to satisfy other customers' bad debts. In virtually every case, the exchanges and other firms have stepped up and made customers whole, but they might not have the ability or willingness to do so in a major meltdown.

Guess that $500 ES margin doesn't look so great now, does it?

 

[atticus]

Segregation in US futures markets is worthless.

 

[EMRGLOBAL]

Such a raise in Margin is normal, even at my clearing firm they have pulled in the strings.

This volititly is pre-signaling some major move.

This volititly is much like the bull of 99 before we headed into the recession and April 2000 huge down day.

Many are looking at patterns before the 87 drop. I'm not saying that such a crash will happen, but volititly like this sends us a nice move in either direction.

And yes, many amatures and newbis have lost a lot of money these past few weeks.

The weak apples will be shaken from the tree

 

[stock777]

I thought everyone was making money.

Big down moves, big up moves.

You can miss 3/4 of the move and still make big $.

I think huge $ was made by all.

 

[Businessman]

Quote from riskymove:

IB raising intraday margin requirements for equity linked index futures.

Yeah i got this message too before todays big rally.

It was a good signal that the recent sell off is over for now atleast.

The weakest longs that bought the July highs (and perhaps doubled up on the way down) have got shaken out with losses and/or margin calls.

First round of panic selling is over.

 

[Businessman]

Quote from Spooz Top:

so they punish the traders that know how to manage risk...unreal....they make no exceptions for anyone after getting off the phone with them....let the novices blow up their accounts just as i did when i started...that`s what the disclaimers are for in the fine print.to protect timber hill.
after 11 years with them...it`s adios.....wire me to open e cry!

This should not effect most traders that know how to manage risk.

When volatility expands a good risk manager cuts back the number of contracts traded to keep risk constant.
Therefore margin rates can double but because you are trading half the number of contracts (or less), it shouldnt really affect you.

 

[Bitstream]

Quote from Businessman:

This should not effect most traders that know how to manage risk.

When volatility expands a good risk manager cuts back the number of contracts traded to keep risk constant.
Therefore margin rates can double but because you are trading half the number of contracts (or less), it shouldnt really affect you.

correct: only traders who know well how to take full advantage of volatility on top of knowing how to manage risk will be affected the most.

 

[larrybf]

Basically, what interactive brokers is telling traders is that they have NO confidence in the ability of their computerized systems to control their risk and electronically close traders positions without incirring a loss..........guys time to smell the roses...........start looking for another prime broker !!!!!!!!!!!!!!!!