Thanks R1234! Does that protect your whole account, or is it just the cash portion, that at the end of the day is swept into an insured account? Does that protect you if they blow out in the middle of the day?
Thanks!
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
My *COD* these IB margin requirements!
- Thread starter Saltynuts
- Start date
Thanks R1234! Does that protect your whole account, or is it just the cash portion, that at the end of the day is swept into an insured account? Does that protect you if they blow out in the middle of the day?
Thanks!
What you could do, if you're afraid of IB bankruptcy and have a large amount in account with them... is open another options trading account, different broker... and buy far OTM puts on IB as an insurance. Something that pays out your account size if IB drops 80%...
Is something some firms do as well. I think someone really cleaned up during GFC when Lehman or Bear Stearns went down, and they had puts for that reason.
EDIT. Just had a look... not much out there in those puts. You'd have to roll them too often and that will start being quite costly I guess.
Thanks Jack! But, yea, I don't think I want to have to keep buying puts on IB haha!
there is is no way you should get margin call with 50% cash or available balance left,
what you are going to get hit with very very soon is whats called expense fees from IB, let me calculate real quick when they kick in.. assuming full cash account otherwise 25% in margin gets deducted if holding stock or stuff... should be 57% of margin you use total from what you had, it should kick in about there. and these eat away profit quick depending Zone you get into and how long, along with premium you take in..
apparently a tax trader attorney I spoke to said he would do it under investment interest???
not saying it can't happen, but with these strict levels, how would IB go broke??? my feeling is they know mathematically with the history of markets, it's going to go down sooner then later, everyone is getting comfortable with the market up so long, that WHAMM is gonna hit people pretty hard who play aggressive and long, but even then there will be calls or people closing out. Also with this expense fee it maybe goes into a bucket for the OH S moment people do bottom out and lose IB money, they can offset with these expense fees coming in daily, and thus wanting people to close their losers before they go even more... if you're that worried just move as that should be the last of trader problems
and yes, there is no one who can match IB Marin fees.. they are insane low, but I get we don't get everything
what you are going to get hit with very very soon is whats called expense fees from IB, let me calculate real quick when they kick in.. assuming full cash account otherwise 25% in margin gets deducted if holding stock or stuff... should be 57% of margin you use total from what you had, it should kick in about there. and these eat away profit quick depending Zone you get into and how long, along with premium you take in..
apparently a tax trader attorney I spoke to said he would do it under investment interest???
not saying it can't happen, but with these strict levels, how would IB go broke??? my feeling is they know mathematically with the history of markets, it's going to go down sooner then later, everyone is getting comfortable with the market up so long, that WHAMM is gonna hit people pretty hard who play aggressive and long, but even then there will be calls or people closing out. Also with this expense fee it maybe goes into a bucket for the OH S moment people do bottom out and lose IB money, they can offset with these expense fees coming in daily, and thus wanting people to close their losers before they go even more... if you're that worried just move as that should be the last of trader problems
and yes, there is no one who can match IB Marin fees.. they are insane low, but I get we don't get everything
Last edited: