IB's 4% Intraday Initial Margin Req. for Index Futures

[Bitstream]

"to make sure accounts have adequate financial capacity to handle sharp, adverse movements IB have doubled intraday initial margin requirements for index futures, from 2% to 4%".

this adjustment was made "in lite of the recent increase in volatility" and "effective until further notice".

now that volatility is back to normal and price ranges have contracted to pre-correction levels, are you going to reverse initial requirements back to 2% or is the new 4% req. here to stay?


thx

 

[joesan]

Quote from Bitstream:

"to make sure accounts have adequate financial capacity to handle sharp, adverse movements IB have doubled intraday initial margin requirements for index futures, from 2% to 4%".

this adjustment was made "in lite of the recent increase in volatility" and "effective until further notice".

now that volatility is back to normal and price ranges have contracted to pre-correction levels, are you going to reverse initial requirements back to 2% or is the new 4% req. here to stay?


thx

How to judge "volatility is back to normal "?

 

[syswizard]

Quote from joesan:

How to judge "volatility is back to normal "?

VIX under 20.
I think we're there.
It'll be interesting to see how long it takes for IB to revert back to 2%.

 

[kon.P]

anyone from IB to answer yet ?

 

[rcanfiel]

Quote from Bitstream:

"to make sure accounts have adequate financial capacity to handle sharp, adverse movements IB have doubled intraday initial margin requirements for index futures, from 2% to 4%".

this adjustment was made "in lite of the recent increase in volatility" and "effective until further notice".

now that volatility is back to normal and price ranges have contracted to pre-correction levels, are you going to reverse initial requirements back to 2% or is the new 4% req. here to stay?


thx

Why is initial leverage of 25:1 for index trading a problem? I avoid firms that allow stupid things like $300 daytrading margins...

When the next Oct. 19 1987 or worse hits, I don't want to be with the next Refco or Sentinel

 

[sporky]

I don't know how some people can use that kind of leverage day in and day out and survive long term. please explain...

I don't really care what IB's margin requirement is cuz it doesn't factor into my MM.

 

[syswizard]

Quote from sporky:

I don't know how some people can use that kind of leverage day in and day out and survive long term. please explain...

Uh...good risk management and intelligent use of stops ?

 

[sporky]

I guess my stops are just dumb

 

[abxs]

Quote from kon.P:

anyone from IB to answer yet ?

yeah I was hoping to see those levels return to normal but ALAS! It's rather the opposite :eek:

The margin requirement for FTSE (Z) has gone from 1313 requirement to 3750 !! That's almost three times as much... but apart from a handful of wide range days we haven't seen anything out of the ordinary.

Are they expecting something unusual to happen?!

http://www.interactivebrokers.com/en/trading/marginRequirements/margin_amer.php?ib_entity=uk

The margin for DAX used to be around 7000 EUR in the beginning of this year... it was 8600 last week and now it is up to 9416...

I think the DAX is reacting rather normally and it's daily range isn't exceptional at all.

 

[osorico]

Quote from abxs:

yeah I was hoping to see those levels return to normal but ALAS! It's rather the opposite :eek:

The margin requirement for FTSE (Z) has gone from 1313 requirement to 3750 !! That's almost three times as much... but apart from a handful of wide range days we haven't seen anything out of the ordinary.

Are they expecting something unusual to happen?!

http://www.interactivebrokers.com/en/trading/marginRequirements/margin_amer.php?ib_entity=uk

The margin for DAX used to be around 7000 EUR in the beginning of this year... it was 8600 last week and now it is up to 9416...

I think the DAX is reacting rather normally and it's daily range isn't exceptional at all.

Unfortunately IB (currently) has a lock on some of the international markets and they can do whatever they want, without fear of losing clients to the competition. DAX and FTSE are widely available afaik.

Good trading to all
Osorico