ib's margin rates incredibly low

[def]

Quote from cscott:


The following things contributed to this which I believe are IB's fault. I later found out that:
1. Forex trades from Ideal do not show on TWS (IB's trading platform) and the "Close All Positions" will not close them either.
2. Forex trades do not show in open positions in account view or executions

cscott,

i've been meaning to respond to your comments - particularly the ones above - which are incorrect and thus want to set the record straight.

1. FOREX trades do show on the TWS when you perform a trade. The amount of time they remain on the screen depends on the configuration you have set (this is the same for all trades).

2. Forex trades DO show in the TWS account window and Forex trades DO show in the trade execution window.

 

[cscott]

Quote from def:

cscott,

i've been meaning to respond to your comments - particularly the ones above - which are incorrect and thus want to set the record straight.

1. FOREX trades do show on the TWS when you perform a trade. The amount of time they remain on the screen depends on the configuration you have set (this is the same for all trades).

2. Forex trades DO show in the TWS account window and Forex trades DO show in the trade execution window.

Are you sure. I did not see the trades on my TWS. Additionally, an IB chat rep told me that forex trades did not show and that he had made a recommendation to management.

Further, on my TWS, forex futures DO show, but regular forex trades DO NOT. I'm using version 558.

 

[def]

Quote from csco:

Are you sure. I did not see the trades on my TWS. Additionally, an IB chat rep told me that forex trades did not show and that he had made a recommendation to management.

Further, on my TWS, forex futures DO show, but regular forex trades DO NOT. I'm using version 558.

Positive; I did some trades last night to double check the execution window and can readily see the balances in a number of different currencies in both my internal USD and HKD base test accounts. Both have open balances which include JPY and KRW. I've attached a screenshot of the account window (HKD base).

I've also asked the help desk to look into some of your comments/problems you posted here and they have shown me the chat transcript you had with Rico that states "please check your market value in the Account Window". Please click in your TWS on View-> Account and and check the market value there your could see your different currency positions."

The recommendation the rep made to management was to have FX positions show up in the portfolio section of the account window. Perhaps this request will be entertained in the future. However, given the portfolio section is just below the section showing currency balances, all information is readily available.

 

[ddunbar]

Quote from cscott:

I cannot stick with anyone (traders included like ddunbar and kiwi_trader) who twist my statements, falsely assumes, makes exaggerations, and posts outright lies, and is disrespectful to others.

Well, 1 for 4. Looks like only "disrespectful to others" applies. I was factual and correct in every other department. So I only owe you a 25% apology.

That said, I apo_ _ _ _ _ _.

(Though looks like you owe IB a full apology for jumping to false conclusions and wrongly blaming and smearing the company.)

 

[cscott]

Quote from def:

Positive; I did some trades last night to double check the execution window and can readily see the balances in a number of different currencies in both my internal USD and HKD base test accounts. Both have open balances which include JPY and KRW. I've attached a screenshot of the account window (HKD base).

I think you have me confused with someone else. Anyhow, you are correct, currency amounts DO show in the account view window, but not on TWS main window. IOW, currency trades from IDEAL do not show on the Market Data line like other trades, and I also have P/L column checked in Configure, and while other futures show P/L, IDEAL does not.

 

[def]

Quote from cscott:

I think you have me confused with someone else. Anyhow, you are correct, currency amounts DO show in the account view window, but not on TWS main window. IOW, currency trades from IDEAL do not show on the Market Data line like other trades, and I also have P/L column checked in Configure, and while other futures show P/L, IDEAL does not.

I'm afraid not as the same transcript asks you to call the CS desk in Europe and you chose not to do so.

That's besides the point. Trades DO show on the main page of the TWS. Open currency positions do not. If you think about it, each time you do a trade in a market which is not your base market, a pnl in the foreign currency is generated. These balances are not caused by FX trades but by open positions on a differing underlying asset. Because of the makeup of the universal account, it wouldn't make sense to show these balances as trades or open positions on the main page of the TWS.

 

[cscott]

Quote from def:

Trades DO show on the main page of the TWS. Open currency positions do not. If you think about it, each time you do a trade in a market which is not your base market, a pnl in the foreign currency is generated. These balances are not caused by FX trades but by open positions on a differing underlying asset. Because of the makeup of the universal account, it wouldn't make sense to show these balances as trades or open positions on the main page of the TWS.

I consider a forex trade with IDEAL to be a trade just like any other trade made on TWS. I respectfully disagree, and think IDEAL currency trades should show on the main TWS page. I believe that is the only sensible way to do it. I really thought it was a bug when I discovered currency trades DO NOT show on TWS's main page.

If IB feels differently about this, I will just stop trading forex with IDEAL to avoid confusion in the future. Instead, I'll trade forex futures with IDEALPRO where my currency positions are shown and clear, just like any other trade.

 

[OnlyIf]

For crying out loud Cscott. Just leave IB and let the rest of us trade happily with them.

I'm sure that would improve their profitability and their ability to provide services for the rest of us. You'll be happier. IB will be happier. We'll be happier. Hell, the world will be a better place.

Stop whining, go somewhere else, and give us peace.

 

[ddunbar]

Quote from cscott:

I consider a forex trade with IDEAL to be a trade just like any other trade made on TWS. I respectfully disagree, and think IDEAL currency trades should show on the main TWS page. I believe that is the only sensible way to do it. I really thought it was a bug when I discovered currency trades DO NOT show on TWS's main page.

If IB feels differently about this, I will just stop trading forex with IDEAL to avoid confusion in the future. Instead, I'll trade forex futures with IDEALPRO where my currency positions are shown and clear, just like any other trade.

Ok,Ok. I'm going to be nice.

Forex futures do not trade on Idealpro. Ideal Pro is the medium by which one trades SPOT currency pairs. It is IB's "smart routing" service to SPOT currency liquidity providers (e.g. banks). IDEAL is where one converts currencies say after trading USD/JPY and your profits are in yen.

On the CME or EUREX US is where one would trade currency futures.

SPOT currency trades do show up in TWS in the execution window, instantly. Always have. They are not regulated or registered financial instruments. You are simply buying one currency while simultaneously selling another. And since the universal account allows you to base your account in various currencies, it wouldn't make any sense to show a currency position on the TWS screen as if it were a commodity, stock, or bond. I could switch my account base currency at will through account management. Now, wouldn't that be a doozy for accounting purposes?

Here's another tip if you position trade currencies. Let's say you forgot what trade and amount you did x amount of days ago. You simply go to account management/reports/trade confirms and look it up. Incidentaly, it will be reflected in the account window in TWS. IF you did a long/short EUR/USD trade, you'll see the notational amount under the EUR column. IF it says 126,345 euros and the current exchange rate is 1.26345, then you know you are holding 100,000 Eur/USD. Your margin should also be 2526.9 which is 126,345/50.

Also, I believe (and I almost forgot) in webtrader, it will tell you what currency positions you are holding.

So all the info is there. It's just not in a format which YOU might like it to be. Shouldn't matter to a trader as traders learn to adapt.

 

[cscott]

I do not normally trade currencies, and it appears that I got currency and forex instruments, and their related exchanges confused, and was wrong. Therein, was the problem, and I respectfully offer IB my sincere apology on this issue.