Interactive Brokers Raises Margins On E-Mini's...once again

[syswizard]

Having already the highest margins for E-Mini index futures in the business, Interactive has raised them once more to nosebleed levels:
"Dear Client,

To clarify last week's communication regarding U.S. Election Day volatility concerns, IBKR’s principal focus is on products having the lowest percent margin rates, in particular, U.S. equity index futures and their derivatives. Stocks generally have higher percent margin rates and will therefore not be affected by the announce changes.

IBKR plans to increase equity index futures and derivatives margins by the aforementioned 35%. By example, ES futures and similar products based on the S&P 500 index would go from a scanning range of approximately 7% to 9.6%."

https://www1.interactivebrokers.com...ex=us&rgt=0&rsk=1&pm=0&rst=101004100808080101

NQ futures now up from $17,600 per contract to over $19,000 per contract.
ES Futures now up to $14,350 from $13,200.
These are up to 10 times what other FCM's are requiring.

 

[Millionaire]

Only 9.6%.

What if there is a 20% gap over the weekend? Limit move after limit move.

They need to set it at $40,000 for each NQ and $30,000 for the ES.

 

[Bad_Badness]

It was 33-34K on ES when the virus meltdown happened.

 

[Millionaire]

It was 33-34K on ES when the virus meltdown happened.

While they set crude oil margin at around 10K.

And crude oil margin went as low at $150 for Long oil positions when the price was below a dollar, as IB margin calculator thought Crude Oil couldnt go below zero.

 

[syswizard]

While they set crude oil margin at around 10K.

And crude oil margin went as low at $150 for Long oil positions when the price was below a dollar, as IB margin calculator thought Crude Oil couldnt go below zero.

This perfectly highlights the insanity of the margin calculation at IB.

 

[syswizard]

Only 9.6%.
What if there is a 20% gap over the weekend? Limit move after limit move.
They need to set it at $40,000 for each NQ and $30,000 for the ES.

The issue with IB margins: no differentiation between intraday and overnight.
That is stupid beyond all belief. Apparently., their risk management unit has never traded....LOL.

 

[JamesJ]

This perfectly highlights the insanity of the margin calculation at IB.

Well, the oil thing was a mistake on their side, they did admit, compensate (many others had similar issues and are now in legal battles with customers) and move on...

I don't get why you would want to trade more than 1 NQ on each 20k in your trading account.
A 100 pt move is nothing these days and you would lose 10% of account...

I am happy with IBKR ajusting margins to expected vola...

 

[tiddlywinks]

I don't get why you would want to trade more than 1 NQ on each 20k in your trading account.
A 100 pt move is nothing these days and you would lose 10% of account...

I don't get why a day-trader would allow 100 full points against a single trade. If a day trader can't discern or manage a minimized risk for a specific trade, that's on the trader, period.

For other (non-daytrade) types of trading, 10% of account value on a single trade may or may not be appropriate, depending on many factors, including expected hold period, volatility, and trader liquid worth.

 

[Tradex]

They need to set it at $40,000 for each NQ and $30,000 for the ES.

We might as well trade stocks, then.

 

[Tradex]

These are up to 10 times what other FCM's are requiring.

Thanks God we don't have such nonsense in the Forex market.