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OK, apparently IB is clueless...
- Thread starter Ticktaker
- Start date
Quote from GermanTrader:
IB margins are non-competitive. They were fine when I was new and needed a large net, but seasoned pros with IB are cheating themselves out of leverage.
one day, there will be a catastrophic event - even just a story published something like Pakistan nuked India.
Sort of like the accidentally published (news was 6 years old) story about United airlines declaring bankruptcy.
These seasoned traders who use extreme leverage will become bugs on the windshield. Then, they will not feel so clever.
Some brokers who specialize in $300 day trading margins will become the blood in the street. They will be overwhelmed by the losses of their customers. $300 controlling $60K of emini? Not so clever on judgement day...
Brokers like IB, who don't allow insane margins, stand a lot better chance of coming through in excellent shape. Customers may see a mega-Refco like event, but much worse.
Quote from GermanTrader:
IB margins are non-competitive. They were fine when I was new and needed a large net, but seasoned pros with IB are cheating themselves out of leverage.
"cheating themselves out of leverage" is no concern for those of us that understand the mathematics of risk of ruin.
Quote from TraderZones:
one day, there will be a catastrophic event - even just a story published something like Pakistan nuked India.
Sort of like the accidentally published (news was 6 years old) story about United airlines declaring bankruptcy.
These seasoned traders who use extreme leverage will become bugs on the windshield. Then, they will not feel so clever.
Some brokers who specialize in $300 day trading margins will become the blood in the street. They will be overwhelmed by the losses of their customers. $300 controlling $60K of emini? Not so clever on judgement day...
Brokers like IB, who don't allow insane margins, stand a lot better chance of coming through in excellent shape. Customers may see a mega-Refco like event, but much worse.
I believe we are going to see a time in the not too distant future when those who survive will be those who knew how wise this advice was. Ignore it at your peril.