Submitting new buy stop orders where my cash cannot cover all orders

[Anoobis]

Much appreciated to all Puts my mind at ease

 

[tomorton]

I'm in a different situation (using a spreadbetting account) but I've been through the subject as I typically trade forex with a large number of open positions and pending entry orders. Some of my firm's restrictions might be applicable.

Firstly, if one of my pending order's entry prices is reached by price movement but execution would exceed my margin, the order is never executed and is cancelled. I have seen the platform also cancel other pending entry orders (at unreached prices) simultaneously but the platform doesn't seem to apply this policy uniformly.

Secondly, there is a specific prohibition in the T&C against entering "large numbers" of entry orders which would, combined or individually, cause margin limits to be breached. Worth checking your own T&C's? (as the resulting action by the firm can include immediate closure of the account)

 

[Turveyd]

Guessing youncan short, cause its a weird cash margin account, you have margin but only 1:1 not 2:1 like normal.

Orders will just reject if not sufficent funds, used to have loads of orders set to get in cheap 20years back.

 

[murray t turtle]

You can't short in a CASH account.
You can't exceed your available excess with any order either filled or open.

%%
That sounds right.BUT the total of his orders sounds like over-trading, even assuming IB catches the error + most likely they will. As far as a sales pitch-salesmen fill more trucks than anybody .LOL-LOL,

[IB does as Do8 noted , have auto liquidation+ if that happens , exspect worst price of the day; for the same reason when a bank does a repo on your delinquint auto loan-they sell it quick + sue you for the balance]

99% invested , with 1% cash is common for elephant size mutual funds, with billions of bucks with full time pro management/marketing.