Finally an intelligent discussion on ET. There have been interesting points on IB's margin issues raised here with the one area of agreement being that the $3,500 for ES (actually $3,938 now started Aug 31) being too high (and the $3,938 today being even more out of line).
I can say in the larger rooms I hang in during the day, the longer this has gone on, the more I have seen traders leave IB over this issue. These are both large accounts and smaller ones, and many who's size I don't know. I am not sure what the tipping point will be on this or even if there is one.
IB does seem to try, to the best of its understanding, to be a very conservative broker. In fact I think there was a time many years ago that IB didn't give any intraday margin at all, for years. There was even a time when IB did not want to add Stop (Bracket) orders for fear that it would exaggerate a market move (don't ask). The point of my saying this is to try to give the view of what is going on inside the minds at IB and why you see and what you will likely continue to see from them.
I can say in the larger rooms I hang in during the day, the longer this has gone on, the more I have seen traders leave IB over this issue. These are both large accounts and smaller ones, and many who's size I don't know. I am not sure what the tipping point will be on this or even if there is one.
IB does seem to try, to the best of its understanding, to be a very conservative broker. In fact I think there was a time many years ago that IB didn't give any intraday margin at all, for years. There was even a time when IB did not want to add Stop (Bracket) orders for fear that it would exaggerate a market move (don't ask). The point of my saying this is to try to give the view of what is going on inside the minds at IB and why you see and what you will likely continue to see from them.
