What is the reason for IB to be trading?

Quote from Ghost of Cutten:

If your stop is so close that a small firm like IB can trigger it at will, then your position wasn't a good one in the first place.
More...


Really? a small firm like IB
 
An important IB customer told me that IB closed down some of its servers during the big move. Can anyone affirm this.
 
majority of IB profits and for most broker/dealer these days is in prop trading like goldman is from trading their own account...as for that alll the participants and all the traders are their competition...

their prop desk at IB is completely different from their retail broker division..it's separate dept.

they don't need a retail division,,,this retail division is just to sell shares of the company to investors and publicity....and is very small part of their profit or business

and IB will liquidate positions with 10 minute notice and won't do any margin calls or pursue collectioins if you owe them money. they won't risk any of their capital because of clients blowing up their accounts.


Quote from ammo:

timber hill was one of the forerunneers in developing the computerized option models that would take all option trades that were pennies over or under valued and hedge everything back to 0,if IB is running a few 100 million or over a billion in traders sum positions,not to mention there own positions,they would be foolish not to have a hedging dept just to minimize there risk if shit hits the fan,if they didn't,you might find it hard to close your acct and collect your cash,should a black monday event wipe out several,maybe hundreds of accounts,first options corp had one trader blow out for 50 million in 87,50 million debit on a 3 million dollar llc accct, they had to eat it
More...
 
Quote from businessstaxes:
they don't need a retail division,,,this retail division is just to sell shares of the company to investors and publicity....and is very small part of their profit or business
More...
Why would a big intelligent company keep up a useless department?

My guess:
The retail part is like a big continuous poll: What is the market sentiment?



Quote from businessstaxes:
their prop desk at IB is completely different from their retail broker division..it's separate dept.
More...
Where did I hear something similar recently?
Oh, yes, I think I remember now: GS.
 
You must log in or register to reply here.
Back
Top