Cheaper financing than IB's margin rates?

Discussion in 'Interactive Brokers' started by HockeyPlayer, Mar 2, 2020.

  1. Sig

    Sig

    Sorry, I haven't played around with that.
     
    #41     Mar 10, 2020
  2. I'm still having trouble getting up the box structure such that I can trade it as a combo rather than legging in. I believe since this is showing as Non-Guaranteed that means I'm legging in, right?
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    #42     Mar 13, 2020
  3. Sig

    Sig

    Sorry, can't help you with IB except to recommend you don't walk but run away from them!
     
    #43     Mar 13, 2020
    legend4life and RosyScenario like this.
  4. tonyf

    tonyf

    why so?
     
    #44     Mar 13, 2020
  5. Sig

    Sig

    Do a search here for IB and "The Algorithm". They have a habit of autoliqudating things like vertical spreads that couldn't possibly lose more money then used to purchase them or the width of the spread because "The Algorithm" isn't programmed properly, among other things. And their "customer service" is both too stupid to grasp the issue and too indifferent to care. Truly one of the worst companies I've ever worked with.
     
    #45     Mar 13, 2020
  6. tonyf

    tonyf

    Who is the best company you've ever worked with?
     
    #46     Mar 14, 2020
    legend4life likes this.
  7. Because @Sig says so and doesn't like IB. He had bad experiences with IB in the past and thus presumes that all IB's customers have (or will have) bad experiences.
     
    #47     Mar 14, 2020
  8. qwerty11

    qwerty11

    Your fear is unjustified. You use a combo (because you selected combo in TWS) so what do you think the market sees......?

    (It's just a generic warning not applicable for your situation)
     
    #48     Mar 14, 2020
  9. qwerty11

    qwerty11

    For the answer you should read this link (and the comments):

    https://www.elitetrader.com/et/thre...n-ibs-margin-rates.341064/page-4#post-5030330

    Quote: Box spreads don't allow levering up. They just reduce your interest rate plain and simple.
     
    #49     Mar 14, 2020
  10. Sig

    Sig

    Do a search for "autoliquidation" and you'll find literally dozens of threads, all related to IB oddly enough, from dozens of people who have experienced the same thing. IB depends on "The Algorithm" to do auto liquidations and "The Algorithm" doesn't properly calculate the max possible loss on vertical options spreads. Everyone is subject to the same code, and if you haven't been impacted than you either don't trade them or haven't been in a situation of wide bid/ask spreads being incorrectly interpreted as larger than possible losses by "The Algorithm". This thread involves spreads that would be subject to this known error.

    Those are all simple facts, there's no "presumption" going on. If you trade straight stocks without margin, IB is great for you. Carry on, and don't feel the need to comment on threads that involve vertical spreads at IB. If you engage in anything that involves a vertical spread, and the topic of this conversation does, then there's a known issue at IB with that. I'm not sure why you're attempting to color that as just some kind of bitterness on my part, presumably to be ignored for that reason? Do you dispute any of the above?
     
    #50     Mar 16, 2020