Will Interactive brokers block or limit my account if I sell more than 15% of daily stock volume?

[wic2021californiaxp]

I don't know if this is true. But I read that some people had problems with otcbb stocks

 

[longandshort]

no but you may have trouble crossing (getting filled)

 

[Dugrel]

I do not think that we have non-critical problems, except that some technical issues may be present.

 

[lpope]

Kind of. Compliance notices and may prevent you from dealing while they do due diligence, which involves asking if you're an insider and presumably some other stuff they don't tell you about. Penalty box can last several days and only applies to buying/selling the particular issue, not the account as a whole and you can transfer the position out. This happened to me when buying an OTCQX Premium stock and I imagine they'd be more concerned on the sell side. My trades were large in absolute value and as a percentage of volume but small as a percentage of ownership. I've seen similar stories on Twitter from microcap fund managers.

 

[wic2021californiaxp]

Kind of. Compliance notices and may prevent you from dealing while they do due diligence, which involves asking if you're an insider and presumably some other stuff they don't tell you about. Penalty box can last several days and only applies to buying/selling the particular issue, not the account as a whole and you can transfer the position out. This happened to me when buying an OTCQX Premium stock and I imagine they'd be more concerned on the sell side. My trades were large in absolute value and as a percentage of volume but small as a percentage of ownership. I've seen similar stories on Twitter from microcap fund managers.

Did the compliance freeze your account on the same operations day ?

 

[lpope]

The account was never frozen, just the instrument. I don't remember the exact timing as it didn't affect my trading but remember being bemused because I could still trade the instrument in other accounts I control at IBKR.

 

[MoreLeverage]

I don’t know what the % of average volume cutoff is, but this has been a problem for me in lower liquidity listed stocks as well as OTC.

 

[JamesJ]

I don’t know what the % of average volume cutoff is, but this has been a problem for me in lower liquidity listed stocks as well as OTC.

I think it's the position size, if >1% of outstanding shares

 

[wic2021californiaxp]

I think it's the position size, if >1% of outstanding shares

Did you need to call the IB compliance department ? And what was the result ?

 

[wic2021californiaxp]

I think it's the position size, if >1% of outstanding shares

Many companies from OTCBB do not inform the number of Outstanding Shares.