Question on over-night margin requirements
- Thread starter Teleologist
- Start date
Quah wrote:
This is irrelevant to me. As far as I know, IB's policy doesn't have anything to do with risk. I really don't care what the reason for their policy is. I have a system that is making money for me and I want to trade more contracts. If I can trade twice as many contracts with another broker and make twice as much money then why shouldn't I do it?
This is irrelevant to me. As far as I know, IB's policy doesn't have anything to do with risk. I really don't care what the reason for their policy is. I have a system that is making money for me and I want to trade more contracts. If I can trade twice as many contracts with another broker and make twice as much money then why shouldn't I do it?
Version77 wrote:
What a hypocrite! You are the one that first began hurling insults.
Version77 wrote:
I never said I was going to use $500 margin.
Version77 wrote:
Okay, for the sake of argument let's say I have a lot to learn. So why don't you teach me something rather than call me names? You could start by explaining to me why I shouldn't want less margin than the $3,968 IB require to trade an ES contract 3 minutes prior to the open.
What a hypocrite! You are the one that first began hurling insults.
Version77 wrote:
I never said I was going to use $500 margin.
Version77 wrote:
Okay, for the sake of argument let's say I have a lot to learn. So why don't you teach me something rather than call me names? You could start by explaining to me why I shouldn't want less margin than the $3,968 IB require to trade an ES contract 3 minutes prior to the open.
You think I have "hurled" insults? Where? And you are the one
calling names. Does the word moron come to mind? All I said is I
thought you were a rookie or a noob. Maybe you aren't.
If you aren't going to use Global, then who?
Whatever you do, make sure you don't over leverage yourself
and wipe yourself out during a downdraw.
Then again, you did say you have never had a losing month. But
that doesn't mean one will never come up.
I will admit that $3968 is a little top heavy, but it is IB's rules.
I hope you have found what you are looking for. Good luck.
Version77 wrote: I will admit that $3968 is a little top heavy, but it is IB's rules.
Teleologist: Right, and so I was looking for a broker that wasn't so top heavy. Why did that provoke you into calling me a rookie and a noob and a professional griper and a cry baby?
Version77:If you aren't going to use Global, then who?
Teleologist: I may use Global, I haven't decided. I'm sure there are other brokers that don't require $3,968 margin per contract to trade futures 3 minutes before the market opens.
Version77: Whatever you do, make sure you don't over leverage yourself and wipe yourself out during a downdraw.
Teleologist: I will be careful. I use pretty tight stops.
Version77: I hope you have found what you are looking for. Good luck.
Teleologist: Thanks
Teleologist: Right, and so I was looking for a broker that wasn't so top heavy. Why did that provoke you into calling me a rookie and a noob and a professional griper and a cry baby?
Version77:If you aren't going to use Global, then who?
Teleologist: I may use Global, I haven't decided. I'm sure there are other brokers that don't require $3,968 margin per contract to trade futures 3 minutes before the market opens.
Version77: Whatever you do, make sure you don't over leverage yourself and wipe yourself out during a downdraw.
Teleologist: I will be careful. I use pretty tight stops.
Version77: I hope you have found what you are looking for. Good luck.
Teleologist: Thanks
Version77 wrote:
Yes, from this forum alone I have been referred to two brokers that only require $500 margin for trades placed 3 minutes before the market opens. They don't consider orders placed before the market opens to be subject to over-night margin rules. For all I know IB is the exception not the rule.
I didn't find out about IB's over-night margin rule until I started using a trading system that required placing orders 3 minutes before the market opens. Prior to that I always traded while the market was open.
Yes, from this forum alone I have been referred to two brokers that only require $500 margin for trades placed 3 minutes before the market opens. They don't consider orders placed before the market opens to be subject to over-night margin rules. For all I know IB is the exception not the rule.
I didn't find out about IB's over-night margin rule until I started using a trading system that required placing orders 3 minutes before the market opens. Prior to that I always traded while the market was open.
I think the actual question should be have you found another broker that does not view 3 minutes before the open as 'overnight' and the answer is YES. There are MANY brokers like that.
It all boils down to what the broker views as 'overnight'. That's the first issue here and it appears it has been solved. We now know that IB views ANY trades outside the normal trading hours as overnight, meanwhile many brokers simply view holding a position at 4:15pm EST as overnight. Once you know how a broker views 'overnight' trading, you can then plan accordingly to their overnight vs. day-trading margins.
That is a very good summary. I agree 100%. Thank you.