Again with this crap.. What part of the business model of brokerages you don't understand?Exactly, cash only or raise margin requirements and don’t have shares to borrow short. To only allow closing long positions at the very moment the big boys are throwing a tantrum via CNBC is just way to fishy c,on man. Some of these stocks were up 1000% already, before the media frenzy...where was their risk management then?
This is like a having the field goal post of one side moved further away in the middle of the super bowl because the other team is crying like a bitch
IBKR Safety of Funds
- Thread starter Dicer
- Start date
IB isn't a threat to go bankrupt.
They have plenty of capital and are conservative about customer margins.
Jay Gould would be so proud of the Wall Street Bets syndicate.
It is just pathetic to have Jay Gould level market manipulation happening in 2021 by a bunch of morons.
I really worry what this does long term to our ability to discuss markets online. There has always been a gray area if we actually followed the letter of the law.
I just noticed that con artist Tron crypto kid is buying a ton of gamestop to "stick to the man".
Really just transfering tons of money to shitty Gamestop execs who don't deserve it .
Good job boy. You really showed them.
It is just pathetic to have Jay Gould level market manipulation happening in 2021 by a bunch of morons.
I really worry what this does long term to our ability to discuss markets online. There has always been a gray area if we actually followed the letter of the law.
I just noticed that con artist Tron crypto kid is buying a ton of gamestop to "stick to the man".
Really just transfering tons of money to shitty Gamestop execs who don't deserve it .
Good job boy. You really showed them.
The timing part, asswipe.
Please elaborate like you did on the other thread that its about commissions. lol
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but try to think about it.
The reason why this happens is that short-sellers have too many short positions. They forget about the risk.
Most of the quant firms only buy 1-10% ADV (10% should be the max), but they short sell the entire firm.
Clearly you couldn't comprehend anything I said, so I'll try again using real life examples.
It's about managing risk and ensuring stable stream of cashflow (yes, this includes commissions and even your fancy flow selling like you pointed out yesterday). If 20% of customers lose 50% of their account within days, it really affects their (the brokers) bottomline in the long run. I have worked for brokerages and I have seen when crude went negative, some big customers lost a lot of money. They got shellshocked, and didn't trade for ages, and definitely not with the same size when and if they resumed. You could really see this in the bottomline.
1) Their customers (RH, ib, bc that's who these thread are specifically talking about) are not the retail traders they are the product.
2) The risk was there weeks ago and their risk department didn't issue restrictions then. Smells fishy that's all I'm saying.
3) If they alienate the PRODUCT side they wont have anything to sell to their customers.
This is 2021 not 1985 when you probably worked at the broker dealer.
1) This thread is literally about IBKR, and you're ranting about your baby RH?
OK, I will still answer this ridiculous statement. So let's say RH loses 10% of their customers (or product, like you like to say), do you think they still get the same revenue from selling their flow to Citadel and such? I will leave this question for you to chew on.2) I agree that the risk was there, but there are clear signs of hyper herding and unbelievable stupidity in it now, hence the risks are exponential.
3) they don't have much to sell if their customers blow up either.
And lastly, my favorite statement of yours where you placed the negative crude prices into 1985, I don't think I have anything to add. I wasn't even born then, I'm still in Uni.
1) This thread is literally about IBKR, and you're ranting about your baby RH?
2) I agree that the risk was there, but there are clear signs of hyper herding and unbelievable stupidity in it now, hence the risks are exponential.
3) they don't have much to sell if their customers blow up either.
And lastly, my favorite statement of yours where you placed the negative crude prices into 1985, I don't think I have anything to add. I wasn't even born then, I'm still in Uni.
I was referencing your answers on the other thread but this can include IBKR as well. I didn't read the crude part is when you worked at the broker dealer.
IB has no right to ban anybody from trading, period. It has the right to raise margin requirements to raise the cost of trade, yes but it doesn't have the right to ban trading or anybody. This is not them exercising duty of care. This is them violating client agreement and committing breach of contracts. In the client agreement we all signed when we opened the account, IB agreed to execute our orders when we send them in the best of their abilities and in return we pay them a commission. This is what they are supposed to do. They don't have the right to refuse.
Where were they when I was losing? What was their duty of care then? Did they ban the MM from trading when I was losing? So they only ban us from trading when we are winning? F*** them!! F*** IB!!
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