IB Intraday Margin's Gone for a Few Days.

[Kiwi 16]

Just a headsup to look at your exposure. IB are obviously concerned that risks are higher again - fasten your seatbelts.

 

IMPORTANT NOTICE regarding Intraday Margin

 

In light of the market volatility and the continuing turmoil in

financial services stocks, IB will eliminate intraday margin

reductions. Commencing at 10:30 P.M. EST today, contracts which

utilize value-at-risk margin models such as SPAN, Eurex, or TIMS in

the commodity sub-account. Traders may consult the account window in

the Trader Work Station to see what the overnight margin will be. We

expect that intraday margin reductions will remain suspended for

subsequent trading sessions and we will make further announcements as

market conditions develop.

 

Regardless of the likelihood of large, rapid changes in market

conditions, we recommend that traders examine their portfolios to

consider their exposure under extreme-move scenarios.

 

Interactive Brokers Risk Management:helloooo:

[brownsfan019 17]

Understandable why brokers do this, just too bad that the traders that know what they are doing get penalized as well.

[OAC 10]

How about firms like Amp and Global Futures ? Do they still keep their intraday margin at $300-$400 per contract ?

[Kiwi 16]

I am really happy that they do it.

 

Why?

 

Because they are not protecting me from myself - they are protecting me from every idiot in the customer base. And, despite the test, there are plenty of fools with IB, just not as many as with some of the low capital low margin outfits.

 

If your broker ceases trading or worse still goes out of business in this situation it won't be a day or two before you get access to your money, it will be an age. Not something I want to happen to me.

 

*** Aussie SPI down 2.9% and Taiwanese STW down 5.3% currently. Should get a nice gap down in the US.

[firewalker 10]

How do you know it's only for a few days?

 

This margin thing has been a reliable contrarian indicator this year

[OAC 10]

How do you know it's only for a few days?

 

This margin thing has been a reliable contrarian indicator this year

 

You are dead right about that.:thumbs up:

As Michael Douglas said in the movie, "Wall Street": Sheeps Get Slaughtered.

Edited September 15, 2008 by OAC

[OAC 10]

Actually the intraday action has been pretty normal since the open.

The idiots at IB should really double the overnight margin and kept the intraday margin the same.

[firewalker 10]

Actually the intraday action has been pretty normal since the open.

The idiots at IB should really double the overnight margin and kept the intraday margin the same.

 

Agree! I mean, have you ever seen the market move 300 points in 5 minutes? Overnight you can have these huge gaps, but intraday... doubtful...

[Kiwi 16]

LOL OAC ... its a reliable indicator ... until it isn't.

 

Things will be - different / the same / on their side - this time (pick your favourite an place your bet).

 

I take the point about overnight margins but I'm guessing that their risk people watch trader behaviours and are protecting against something (maybe people like me who only just closed their stw position in time yesterday (I was sure I could get a few more points)).

 

I've just seen the bleating on ET when IB raises the intraday and the funny thing is that the guys who've been around for 5+ years on ET go "yes, its sensible, protect me from the newbies" and a bunch of sub 1 year people yell and scream. The funny thing about the yellers and screamers is that 18 months later most of them have disappeared from ET (I've tracked a few in moments of existential market boredom).

[firewalker 10]

LOL OAC ... its a reliable indicator ... until it isn't.

 

Things will be - different / the same / on their side - this time (pick your favourite an place your bet).

 

 

Depends what you want from it... I had a look over at ET and I read people going long ONLY because the VIX has gone up! That's ridiculous imo...

 

However, each time IB raised their margins it coincided with an intermediate bottom. I don't believe anyone should go long right now, I think this fast trend down is only half way. But as fear & panic rises, it's only a matter of time before capitulation sets in...

[firewalker 10]

looks like they might be gone for a few 'months' rather then days...

[MC 10]

LOL OAC ... its a reliable indicator ... until it isn't.

 

Things will be - different / the same / on their side - this time (pick your favourite an place your bet).

 

I take the point about overnight margins but I'm guessing that their risk people watch trader behaviours and are protecting against something (maybe people like me who only just closed their stw position in time yesterday (I was sure I could get a few more points)).

 

I've just seen the bleating on ET when IB raises the intraday and the funny thing is that the guys who've been around for 5+ years on ET go "yes, its sensible, protect me from the newbies" and a bunch of sub 1 year people yell and scream. The funny thing about the yellers and screamers is that 18 months later most of them have disappeared from ET (I've tracked a few in moments of existential market boredom).

 

It's sad but true. If only the fed and lenders were as cautious and concerned about the lil guys maybe the intraday margins would still be there at IB.

Cause then vix wouldn't be up as high and nest eggs wouldn't be -40% for the year. LOL

 

It's a sad society where companies need to protect people from themselves. Why can't people just be reasonable and logical. I have a small (sub 10k) account and have been cash here. I trade the YM but not when a 10 point stop must become a 100 point stop. Not when my pivots go from 20-50 points apart to 200-500 points apart with 10x volatility. It's just common sense that my account cannot handle a drawdown in this environment, so I sit and wait. Dumb me for being rational...I am killing it paper trading. LOL J/K

[xracer 10]

I am really happy that they do it.

 

Why?

 

Because they are not protecting me from myself - they are protecting me from every idiot in the customer base. And, despite the test, there are plenty of fools with IB, just not as many as with some of the low capital low margin outfits.

 

 

I agree. During times like these where many people tend to blow up their accounts, I feel much better about having assets at a firm that's doing what they feel is necessary to stay in business.

[brownsfan019 17]

The other side of the coin is using a firm that allows traders to trade w/ the 'regular' margins but have the proper risk control in place to ensure the idiots only take out their own account. I personally would not want my margin reduced simply b/c the firm is afraid of the true idiots that do not understand it.

 

Example - Open ECry has the proper risk controls in place so that margins have not been adjusted AT ALL during the recent times. Does that mean OEC is a bad firm? Far from it. They are catering to their professional traders, CTAs, etc. all the meanwhile have the risk controls in place to make sure the idiots don't hurt anyone but themselves.

 

So, I disagree 100% w/ the 'this is good for them to raise margins' as one that understands margin and can control it properly. Since I don't keep a ton of extra cash in my futures accounts, I like the ability to set my own margin settings and not at the discretion of a firm worried about the idiots messing the system up. All that says to me is the risk control in place is not robust enough to keep up.

[BlowFish 10]

Well IB give pretty good interest on funds you have deposited so it's less of a big deal (do OEC just out of curiosity?). Of course they have all the real time controls in place too. I do understand why an experienced trader might want to use high leverage if their capital was working elsewhere.

[brownsfan019 17]

Well IB give pretty good interest on funds you have deposited so it's less of a big deal (do OEC just out of curiosity?). Of course they have all the real time controls in place too. I do understand why an experienced trader might want to use high leverage if their capital was working elsewhere.

 

OEC does based on the account size. Nothing to get excited about though. What does IB pay on funds?

[BlowFish 10]

Do you know I can't remember to be honest Last I looked it was better than I could get in a 'regular' bank deposit account. Again I would imagine it is based on account size, as I too don't have that much in the account I never pay it too much attention. I have only hit margin troubles on the DAX where they used to switch to full overnight margin at 4.30 European time (even though the DAX is still open then).

 

Good to hear that OEC give interest - more brokers should imo it might not amount to much but beer and burgers one a month is better than nothing!

[method 10]

BF, do they still do that (introducing overnight margins while markets are still open) on the eurex?

[BlowFish 10]

I honestly don't know. Haven't traded the DAX through IB for a while. Could always shoot them a message through the platform if you have an account or it's probably on the website somwhere.

[Infinity_Tom 10]

Infinity Daytrde Margins always $500.

 

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Any questions call me directly 866-563-6123 / 312-373-6234

t.duffy@infinitybrokerage.com

 

Best regards,

 

Tom

[MidKnight 12]

I would consider infinity if you offered more markets Tom. Finding an alternate broker for Asia (in my case Tokyo and Osaka) has been impossible.

[xpress 10]

I would consider infinity if you offered more markets Tom. Finding an alternate broker for Asia (in my case Tokyo and Osaka) has been impossible.

 

Other then IB I haven't come across many brokers that let you trade the asian markets. IB and Sonray are the only brokers I've found that let you trade the SPI.