Your experiences with being auto-liquidated by IBKR's strict risk management

d08 · Jun 27, 2017

ET180 said:
Where did I say anything about trading only a few positions or not having diversification? I just checked and I currently have 67 positions and was over 100 before the June monthly expiration -- mostly short calls and puts. I like diversification. But I never worry about auto-liquidation because I don't let my leverage get so high that any 20 point jump in the VIX will cause a liquidation and force me to dump positions at the worst possible time.

I'm talking about portfolios where any kind of jump in the indexes won't cause significant losses. Leverage is almost irrelevant in very balanced portfolios.

sprstpd · Jun 27, 2017

helpme_please said:
"liquidate last" is not useful when the portfolio is diversified with >50 securities. A more useful feature would be "liquidate first". In fact, it is more logical too. More logical to decide on what to do with things that happen first rather than things that happen last. I wonder why IBKR does not have a "liquidate first" feature.

Mark all your securities except the one you want liquidated first as "liquidate last"?

helpme_please · Jun 27, 2017

sprstpd said:
Mark all your securities except the one you want liquidated first as "liquidate last"?

Low productivity.

Sfar · Jan 10, 2019

Last two months, I facing liquidation issue in interactive broker. Is anybody suggest me how I can proceed on that or anybody facing the same issue

MoreLeverage · Jan 10, 2019

Sfar said:
Last two months, I facing liquidation issue in interactive broker. Is anybody suggest me how I can proceed on that or anybody facing the same issue

What exactly is your issue? What type of positions do you have and why are you facing liquidation?

digitalnomad · Jan 10, 2019

IB auto-liquidation isn't a broker incompetence. It's a client position management problem. I've never once had an issue with this using IB for 10+ years

murray t turtle · Jan 10, 2019

digitalnomad said:
IB auto-liquidation isn't a broker incompetence. It's a client position management problem. I've never once had an issue with this using IB for 10+ years

%%
And anytime ,anyone ''has to sell or close out a position'', expect the worst fill of the day.

Works the same way when a bank forecloses on your real estate+ they sell it quick+ sue the borrower for deficiency; unless you contract forbids it.

Sfar · Jan 10, 2019

Problems mostly in futures and options trading. My issue I usually buy spread of long and short legs of futures options. When the market moves in one direction, IB system automatically closes my one leg and keep other leg open. If I tried to close other leg, it did not allow me to close because margin violation problem. Both side, they blocked me eventually I lose huge money because 2 legs are closed in 2 different time.

Sfar · Jan 10, 2019

digitalnomad said:
IB auto-liquidation isn't a broker incompetence. It's a client position management problem. I've never once had an issue with this using IB for 10+ years

Do you know how many complaints are filled in FINRA in the same issue. Believe me lots of people having the same issue.

GRULSTMRNN · Jan 10, 2019

Portfolio margin? On stocks? I experienced differently, it mostly works for me when using cash equity. I second your comments on derivatives, however.

Edit: just saw this thread is 1.5yrs old. Let the post stand as it still applies.

d08 said:
There is no half hour warning. The warning is typically 10 minutes. IB's margin system is primitive, it's not at all about risk. You can have a perfectly balanced portfolio (long/short, correlation 1) and it treats the positions same as long/long, how does that makes any sense?
I trade multiple strategies, no correlation and the margin system doesn't reward me in any way.