Another thing; When do IB have to make good their margin with the clearing house ? I bet it isn't real-time !
My statement didn't require precognition. My point was to state that a lot can happen in 10 minutes. Leave enough on the table to account for variation margin. Problem is, 90% of the trader population are degenerate gamblers.
We will notify other clients who have affected positions. As you are already notified with the explicit formula, there is no additional point to notify you again, is there? example: strike difference = 10 points market prices the box at 10.5 margin (in points) will be =MAX(1.02 * 10.5, 10) =MAX(10.71,10) =10.71 margin in $$ = contractMultiplier * positionSize * 10.71
Riskarb Even the most conservative trader, who pays attention to margin requirements, would fall foul if he was on the wrong side of a market free-fall. I agree it's wise not to margin the hilt, but margining for a market-freefall is a bit much, IMO. Depends what we mean by free-fall. If I hit margin I have several choices; Stump up cash Buy cover Liquidate And I need more than 60 seconds to decide what to do, most traders would. So I'm happy to pay a little more for a broker that gives me those choices, within a reasonable time frame. What's the rush with IB liquidating ? Just when do <i><b>they</b></i> (IB) need to make good their margins with clearing ? Not real-time I bet ! I disagree. It's 100% ,but 10% delude themselves. Which camp are you BTW ?
BTW, does THIS constitute notice to ALL of your customers? Or each trader has a different cutoff date starting with my partner?
You're continuing to misunderstand my point related to the "10 minute rule" as defined. No worries. I prefer my retail broker to have safeguards in place which reduce my broker's debit risk. Anyone remember Steve Fossett? We're all gamblers. You're not? Must be comforting to be playing with so much edge.
That is NOT called AUTOMATING! How suddenly are you making individual rules for each customer??? That totally contradicts your corporate philoshophy which was your whole excuse for the liquidation!!