IBKR Safety of Funds

caroy said:
I don't trade through IB but I have respect for them and specifically their founder. He came to this country with nothing and has built a market leading firm. I was impressed with their integrity in making customers whole during the whole negative crude oil fiasco when they had their platform programmed incorrectly and did not relay accurate prices. IB made people whole for their error. Nobody likes changing the rules mid game but it's in the disclosure documents and is a part of life. Everyone likes seeing hedge funds lose to the retail "retards" but coordinating a social media attack and a run on known shorts is in my book the same as a shady broker pumping and dumping penny stocks. I'm curious as to the what rules and regulations all this brings coming forward. I work on a college campus and yesterday the talk of everyone in class was going long some bullshit crypto called dogie coin. They were all showing me their apps and letting me know I'm missing out on the next big thing. These kids all want to hop on the ride. At least they are talking about the markets. Bubbles burst. I have a whole basement full to tulip bulbs I'm trying to sell but the futures market for them seems to have lost its liquidity.
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Perhaps, your students are doing a pair trade —Long dogie coin (sorry I haven’t heard this) and short Bitcoin.

You should be happy with your students despite look dumb. At least, they are willing to throw real money in the market and try to learn about the market instead of learning useless CAPM model or supply & demand curve.

First hand experience is better than just learning from academic books.
 
Dicer said:
Perhaps, your students are doing a pair trade —Long dogie coin (sorry I haven’t heard this) and short Bitcoin.

You should be happy with your students despite look dumb. At least, they are willing to throw real money in the market and try to learn about the market instead of learning useless CAPM model or supply & demand curve.

First hand experience is better than just learning from academic books.
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Agreed.
 
They are talking about doge coin.
 

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From their financial statements:
- Ending client equity of $288.6 billion, 66% higher than prior year and 7% higher than prior month.
- Ending client margin loan balances of $39.0 billion, 26% higher than prior year and 18% higher than the prior month.
- Ending client credit balances of $77.7 billion, including $2.9 billion in insured bank deposit sweeps

What are actually "client margin loan balances" and "client credit balances"? Could someone explain?
 
SteveM said:
We truly live in an era of fake news, spin and distortion.

IB was right to take the steps they have taken.

The IB CEO is correct in his assessment of the risks posed to brokerages by this unprecedented retail pump, largely based on lies and distortions (with dump to soon follow).

There is no grand conspiracy - it is simple risk management.
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This. Petterfy is an old school trader and it shows in IB's attitude to risk management - though at this point it's not clear how involved he is in the day to day, and as the IB downtime a few weeks ago showed, they aren't immune to the ill effects of cutthroat cost/market share wars against opponents funded by endless VC capital.

The time to really worry will be when he exits the stage, and they stop responding in this way.
 
adamovicm said:
From their financial statements:
- Ending client equity of $288.6 billion, 66% higher than prior year and 7% higher than prior month.
- Ending client margin loan balances of $39.0 billion, 26% higher than prior year and 18% higher than the prior month.
- Ending client credit balances of $77.7 billion, including $2.9 billion in insured bank deposit sweeps

What are actually "client margin loan balances" and "client credit balances"? Could someone explain?
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client loan balances - clients borrowing on margin
Ending credit balances - cash clients are holding

wild numbers for DARTs just came in for Jan

  • For January, Interactive Brokers Group (IBKR +6.7%) reported 3.3M Daily Average Revenue Trades ((DARTs)) (+223% Y/Y and +43% M/M); 656 annualized average cleared DARTs per client account.
  • Ending client equity stood at $313.4B (+78% Y/Y and +9% M/M) including $2.43B of client equity acquired from Folio Investments; ending client margin loan balances of $40.8B (+49% Y/Y, +5% M/M).
  • Ending client credit balances of $82.7B (+40% Y/Y, +6% M/M), including $2.7B in insured bank deposit sweeps.


https://seekingalpha.com/news/36567...k-3&utm_medium=email&utm_source=seeking_alpha
 
caroy said:
I don't trade through IB but I have respect for them and specifically their founder. He came to this country with nothing and has built a market leading firm. I was impressed with their integrity in making customers whole during the whole negative crude oil fiasco when they had their platform programmed incorrectly and did not relay accurate prices. IB made people whole for their error. Nobody likes changing the rules mid game but it's in the disclosure documents and is a part of life. Everyone likes seeing hedge funds lose to the retail "retards" but coordinating a social media attack and a run on known shorts is in my book the same as a shady broker pumping and dumping penny stocks. I'm curious as to the what rules and regulations all this brings coming forward. I work on a college campus and yesterday the talk of everyone in class was going long some bullshit crypto called dogie coin. They were all showing me their apps and letting me know I'm missing out on the next big thing. These kids all want to hop on the ride. At least they are talking about the markets. Bubbles burst. I have a whole basement full to tulip bulbs I'm trying to sell but the futures market for them seems to have lost its liquidity.
More...

Are your students going to drop out of schooling and plan for their retirement?
 
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