Bitcoin future (BRR) at IB, 200,000 USD margin requirement?

Discussion in 'Interactive Brokers' started by GRULSTMRNN, Jun 26, 2019.

  1. MrMuppet

    MrMuppet

    Oh wow...you didn't even reply to the question, instead you exploded right away in a mess of insutling gibberish XD.

    Good lord...classic ET.

    Looks like you should see a therapist to get a grip on your anger management issues.
    The boasting made me chuckle, tho...

    I just put you on ignore.
     
    #21     Jun 27, 2019
  2. Robert Morse

    Robert Morse Sponsor

    This is the reality. IB would prefer to have very few clients short this symbol and miss out on those fees. They determined there is too much firm risk. I disagree but I do not get a vote. At every clearing firm, they have some symbol or asset class they do this with. For an account of your size, it makes sense to have more than one clearing broker so you can manage your book in the way you choose.
     
    #22     Jun 27, 2019
  3. please do so, then I do not have to read your bs. You did not even grasp the purpose of the entire thread. I asked for a rational explanation of how 200k is reasonable for a 65k notional contract at given volatility of the underlying. But that apparently completely escaped you. Instead, you started blabbering about Coinbase (the platform that got frozen even on a 1500 point move yesterday) and how margin of 200k was even too low. Never cared to explain any rational. Good riddance.

     
    Last edited: Jun 27, 2019
    #23     Jun 27, 2019
  4. Yeah I generally agree with your latter comments but as I run a large algo trading platform, managing one central in-house OMS with various broker interfaces introduces all sorts of additional complexities. But I reached a state where I want to also trade futures spreads, something I see IB is very uncompetitive in. I will reach out to you via PM when I get to consider brokers for those products. For now this bitcoin trade was to just get my feet wet as I have not previously traded this asset. BTW, bitcoin trades below my originally planned entry price now. Down 17% right now on the day as we speak.

    PS You are up very early my friend ;-)

     
    #24     Jun 27, 2019
  5. Robert Morse

    Robert Morse Sponsor

    I start my day at around 4:30/5am ET. I do not recommend FIX but you can run one FIX server and route orders to a number of brokers on a number of asset classes.
     
    #25     Jun 27, 2019
    coplii likes this.
  6. Daal

    Daal

    OP,
    Its called black swan protection
     
    #26     Jun 27, 2019
  7. Wow, that is very early. Personal habit or job necessity?

    Yes, I am aware of that, and even via APIs the mere order submission is easily implementable, however, it is handling all the different conventions such as symbology, margin levels, risk limits and the like that add to the complexity. But as said, I have reached a point where the payoff and benefits may outweigh the cost/effort to extend my architectural capabilities in handling additional brokers.

     
    #27     Jun 27, 2019
  8. By that argument, all assets, scaled by their volatility, should demand a margin that is orders of magnitude higher than current margin levels.

     
    #28     Jun 27, 2019
  9. Robert Morse

    Robert Morse Sponsor

    I'm not required to be at work this early or work from home this early. I like to do some processes early and respond to prospective and current clients that asked questions last night after 8 pm when I choose to go offline.
     
    #29     Jun 27, 2019
  10. Daal

    Daal

    How many liquid assets have gone from 5 cents to 20,000 in 10 years? This ain't corn dude
     
    #30     Jun 27, 2019
    Overnight likes this.