ATTENTION IB REPS: be it resolved that margin is too low

Discussion in 'Forex Brokers' started by The Gambler, May 10, 2006.

  1. I like IB a lot. It is a great company, and I've used it a long time for other trading, not forex.

    I am getting more heavily into forex trading and I am not pleased with the margin offered. Can you give us the option of up to 1% margin for idiots that wish to piss away their money or for clever traders who know how to handle it, as the case may be? The odd time, I need more leverage!


    ...every hands a winner and every hands a loser...
     
  2. ... how many brokerage accounts do you have Forex, this is like your 4th or 5th different post about a different broker already lol.

    Just curious, nothing wrong with backups, but wow.
     
  3. i have only 1 account for forex (won't say where). I haven't used IB for forex yet, only other trading. I would if the margin were better. I am looking around, not happy with my current forex broker
     
  4. Steve_IB

    Steve_IB Interactive Brokers

    If one of our clients blows their account over a weekend gap and doesn't have the funds to cover the deficit, would it be okay if we use your funds in your account to cover it?

    (Sorry for the sarcasm, but when we consider providing more margin, this is the question that we have to ask ourselves)
     
  5. Is there some way to liquidate someone's account on the weekend if they have a margin call? Oanda allows trading on the weekend with a spread of 10 eur/usd
     
  6. JLarsen

    JLarsen

    Hello Steve_IB,

    what about different margin requirement for daytrading and positions over weekend, this would fit mainly the need for the short term trader looking for higer leverage and your saftety. ???

    Concerning your statement 'blowing account over weekend'
    I would like to show you an very inereseting transcript I hold
    last FRIDAY AFTER MARKET CLOSE with the IB support stuff.

    This was after getting a mail notification of a busted trade also FRIDAY 45 minutes after market close ....

    After you have read this carefully I would really be happy about comment and answering the question who was bringing weekend positioning risk to my account?

    (I wiped out my username and the one of the support)

    ************START TRANSCRIPT ****************************

    ChatSys: This chat is associated with ticket #559444. Please record this number for use in future inquiries. You are currently in room 'General '.
    IB support: Hello, this is Mike, how can I help you?
    MyUserName: Hello
    MyUserName: I just get a Trade Bust notification
    MyUserName: Do you have access to the message ?
    MyUserName: from IB HelpDesk ?
    IB support: let me check
    IB support: I do not see it
    IB support: for what?
    MyUserName: why not, its a message from IB Help Desk ?
    IB support: do not know, but it is not here...do you want me to look at something
    IB support: ?
    MyUserName: Trade Bust notification for currency trades from wednesday
    MyUserName: I want to be informed,. what will hapen to my account now
    MyUserName: in the message there is ...
    MyUserName: "Removing these transaction(s) will change the currency position in the account."
    IB support: copy and paste the entire message please
    MyUserName: I need to know what this meens. Does this meen that you are filling my account with unwanted positions ????
    IB support: copy and paste the entire message please
    MyUserName: Unpossible, I just can copy one line
    MyUserName: I can reply the message
    IB support: well you need to give me more info...like the specifics
    IB support: what trans?
    MyUserName: I replied now, you should find it in your inbox
    MyUserName: do you have it ?
    MyUserName: I repied
    MyUserName: I replied to help@interactivebrokers.com
    IB support: yes
    IB support: one sec
    MyUserName: In this notification stands ...
    MyUserName: "Removing these transaction(s) will change the currency position in the account. "
    IB support: yes
    IB support: those trades listed will be removed
    IB support: exactly what it states
    MyUserName: I never carry any positions over daxy or over the weekend.
    MyUserName: removed meens what,. I don't have this positions any more
    MyUserName: so what wikll be removed ???
    MyUserName: my account is flat concerning currency positions
    MyUserName: so, you may compensate the amount at time of the erroneous transactions
    MyUserName: BUT I DONT WANT ANY POSITIONS AT MONDAY MORNING
    MyUserName: do you understand what I mean ?
    IB support: yes
    MyUserName: okay, so what will happen at monday ?
    IB support: those trades were clearly erroneous
    MyUserName: I am flat, since the erroneous opend postions I have closed already 5 minutes after this happens
    MyUserName: so WHAT WILL BE MY POSITION IN EURGBP on Monday morning????
    MyUserName: at the moment its FLAT
    IB support: Please review your account position prior to the open of the market for next week to ensure that this action does not result in a deficit in the account
    MyUserName: hello, I can red the mail
    IB support: the trades are listed on the bulletin
    MyUserName: SO YOU ARE OPENINGF POSITIONS AT MY ACOOUNT ON MONDAY???
    IB support: per the bulletin, tonight
    MyUserName: and I carry them over weekend ????????
    MyUserName: THAT NOT ACCEPTABLE.
    MyUserName: THIS WAS YOUR IBs FAULT
    MyUserName: I DO NOT WANT ANY POSITION ON MY ACCOUNT OVER WEEKEND
    IB support: unfortunately it looks like you will
    IB support: if you seek compensation, please send in a web ticket with the details
    MyUserName: You can easily do the compensation on Netliquidation based on the fair price at the moment the erroneous transactions happens
    IB support: it has to be submitted in writing via web ticket or email
    MyUserName: thios is what I ask now.
    MyUserName: No position, instead FAIR COMPENSATION based on fair price
    IB support: it first has to be covered
    MyUserName: ther is nothing to cover any more
    IB support: once the trades are canceled, there will be
    MyUserName: 5 minutes after I recognized this funny trades I closed then, thiws was two day
    MyUserName: ago, and now you wat to fill up my account with positions over wekkeend, thats unbelievable
    MyUserName: and unaccabtable
    IB support: I understand where you are coming from, unfortunately they will be busted
    MyUserName: there is no need, If you do just a Netliquidation compensation with fair price
    MyUserName: thats what would be easy and fair
    MyUserName: you cannot trade my account by pushing currency positions on it at friday evening
    IB support: you would still need to submit
    MyUserName: a wheb-ticket or what do you mean ?
    IB support: a web ticket in the account mang menu
    MyUserName: So will it be processed before monday ?
    MyUserName: can I just copy Out session to it ?
    IB support: no
    MyUserName: will you take/be responsible for the ticket ?
    IB support: you can copy and paste it to web ticket
    IB support: you have to cover first
    MyUserName: okay, and on monday morning I wil see plenty of EURGBP positions on my account ?
    IB support: per the bulletin, you should
    MyUserName: and then I close them again and then my request is proceseed and you will trade my account again and so on ????
    IB support: it is up to you if you want to keep the position on......
    IB support: if you do close it, then you can submit request for comp
    MyUserName: I DO NOT WANT ANY POSITIONS, NOT TONIGHT, NOT AT WEEKEND, NOT ON MONDAY MORNING, thats the problem
    IB support: I know
    IB support: I can't change that
    MyUserName: evrything could be so easy if you just compensate the Netliquid, not trading my account
    IB support: probably, but that is not the policy
    MyUserName: last month I paid about $3000 on comissions on IDEALPRO
    MyUserName: now this,
    MyUserName: Hello,
    IB support: yes
    MyUserName: I just take a quick look
    MyUserName: of what your policy will cost me ....
    IB support: I believe you but there is nothing I can do at this time
    MyUserName: ita abou 550000 EURGBP @ fair value of 0.6856 on wedneday
    MyUserName: last price today was 0.6844
    MyUserName: that 12 pip x 5.5 lots ~$ 18.5 = $1220 !!!!
    IB support: then when it is closed out, submit a web ticket and ask for it back
    IB support: it goes to a compensation committee
    IB support: I do not know how else to say it
    MyUserName: and there it stucks for 6 weeks like last time
    IB support: it will not take 6 weeks
    MyUserName: it tooks exactly last time
    MyUserName: and this was an easier case than this one
    MyUserName: okay, one question abaout compensation
    MyUserName: The compensation happens for EURGBP BUY Position I got for a fals price
    MyUserName: will the positiuons be closed now , so -due to I am currently flat- I will end up with SHORT Postions ?
    IB support: if the net trades listed are buys, then yes
    MyUserName: ore will the original trades be canceled (at originale price) and opened again with the reguilar price and I end un LONG ???
    IB support: do not know..
    IB support: they will decide if it does happen
    MyUserName: LONG or SHORT ?
    IB support: just told you ,if the net trades listed are buys, then yes
    IB support: short
    IB support: I have to take other chats
    IB support: since we are going no where
    MyUserName: okay, thanks
    IB support: yw
    ChatSys: This chat session is being terminated by the CSR

    --------------------------------------------------------------------------------

    The CSR has ended this chat. You may click EndChat for more options or close this window.



    ************END TRANSCRIPT ****************************


    So who was bringing WEEKEND POSITIOON RISK to MY ACCOUNT ?????

    Regards
    Joerg



    Joerg
     
  7. JLarsen

    JLarsen

    Hello,

    just to shortly sum up what happend:

    I got the trade bust notification by email on fridey 45 minutes after market close.

    There was standing ....
    " These trades were not removed from the account and are being removed from the account this evening. Removing these transaction(s) will change the currency position in the account. Please review the account position prior to the open of the market for next week to ensure that this action does not result in a deficit in the account.
    "

    I never ever carry any currency positions over weekend.

    BUT IB processed the trade bust compensation FRIDAY AFTER MARKET close filling my account with unwanted positions.

    So I ended up with ~ 550000 EURGBP, I had to carry over the weekend!!!!

    I was in fear the whole weekend, where in what direction EURGBP was going.

    I think, the process of doing a compensation/trades on customers account FRIDAY AFTER MARKET CLOSE and inform him afterwards
    is REALY BAD BEHAVIOUR.

    I was really disappointed, because apart from this task I am very happy with IB's IDEALPRO plattform.
    (otherwise I would not pay about $4000 !!!! on comissions for
    IDEALPRO like I did in April!!!)

    Looking forward of a comment of IB represantative.

    Joerg




    I wrote these already to IB ask them to rethink what they are doing.

    The
     
  8. Steve_IB

    Steve_IB Interactive Brokers

    Joerg,
    This is off-topic and not relevant to the margin question.

    However, I did look at the trade busts from last week, and the ones that occurred in EUR/GBP occurred at prices which haven't traded at since 10th March 2006 and 29th June 2005. I think it's fair that these trades would be busted. If you believe that compensation is warranted then please send a mail to help@interactivebrokers.com and the request will be reviewed.

    Back to the thread title. The weekend risk was an example. 100-1 margin is very risky fo us. There are frequently big moves in the markets particularly after the numbers come out, or a cental banker slips on his words. The market could move extremely quickly without giving time to liquidate the customer optimally.
     
  9. wwx

    wwx

    Steve:

    Trying to understand Joerg's grievance...

    Do you mean that a number of EUR/GBP trades "occurred" as a result of spikes or other exceptional circumstances?
     
  10. JLarsen

    JLarsen


    Sorry Steve,

    is it really off topic?

    You talked about 'blowing account over weekend',
    this was, what makes my angry, because my
    memory of the last weekend is still fresh.

    We are talking about leverage and risk of currency trading.
    IB puts the risk on my account by placing position onm my account
    I had to carry over the weekend.

    If you would have read my post carefully, than you would understand, that I am not critizising the trade bust.
    The busted trades were failure which hat to be compensated of course.

    What I was REALLY obset, was HOW it was handled by IB.

    Doing the compesation by
    filling the accountwith positions FRIDAY AFTER MARKETCLOSE and informing me also friday after market close, leaving me with positions risk over the weekend.
    THIS was really bad.

    Do you think, processing trade bust friday after market close is
    good/fair practice and what the customer like?

    Comments from you and other trades are wellcome.

    Joerg
     
    #10     May 10, 2006