As a former Cybertrader I can confirm that IB's margin policy is much more relaxed than Cybers. At Cyber, if you get a margin call in a Pattern Daytrader account, you need to meet the call within 3 days. During these 3 days the account is restricted to cash trades only (no shorts). If after 3 days the 25 k are not restored, the account is limited to closing open positions only until the 25k are restored, or until the account status is changed to a non-daytrading account, something you can demand only once every 90 days. Of couse if you did 10 daytrades at IB and then the account falls under 25k, you'r out of the stockgame for the next 5 days. You might still trade futures and options. croc
Thank goodness I am with IB and not Cyber. I have restocked my account with new money so I don't have to worry. But it is nice to know what IB's policy is in this manner.
actually that sounds like a nice built in circuit breaker. If you are rapidly daytrading and losing your butt and your account equity dips below $25k then they start restricting you. Makes perfect sense to me, especially if you are fully margined ( 4:1) and 75% of the money at risk is not even yours.