stop spreading incorrect information to benefit your business. Auto liquidation NEVER EVER occurs in options positions as long as someone is long the options contract. The premium is paid in full.
volpunter, I have to add a clarification to your statement here.
IB
will liquidate long options positions in order to attempt to raise cash to cover a deficiency that may have been created by margin use in any other product, including non-securities such as futures and forex.
Perhaps you meant that you would not get liquidated if your account
only held long options positions and you held no other products for which margin is required. Obviously in that case you would never face an auto-liquidation, because there would never be a margin deficiency.
neotrader, the PFOF disclosures by IB which you cite only seem contradictory if not read in their entirety.
IB states: "IB does not sell its order flow to another broker
to handle and route."
“To handle and route” are the operative words here. This means that IB is
less like brokers such as TDA and Raymond James that
sell order flow to brokers like Citi and KCG, and
more like brokers such as Citi and KCG who retain captive order flow, operate dark pools, make markets, and actually
buy order flow from others.
def alleges that broker-dealers who buy order flow do so because “They get first look and many of them will lift the better offer that came up and flip it to you at the price you provided or perhaps even with time price improvement but that still doesn't mean you got the best possible fill.”
Left unanswered is the question of why IB also buys order flow from brokers who do not make markets or operate dark pools.
To def, would you mind stating whether or not IB will accept an order and route it to an exchange or dark pool if the customer does not have enough margin to cover that order if it were executed before IB could cancel it? Sounds like a dubious claim on the part of hajimow, particularly since the advent of Rule 15c3-5.
