Wow, every day it's a new trading challenge with IB. Although I have quite a few smallcaps, I'm far enough below the margin level for this not to affect me right now, but it may limit my ability to make some easy money with any sharp drops in small caps in the coming weeks. Is IB expecting a crash this week? This rule change seems rather drastic. Hopefully they'll go back to normal margin rates in a few weeks. Meanwhile, expect some margin calls Monday afternoon causing lots of volatility in thinly-traded smallcaps. Should be fun!
This bulletin should be sent to all , regardless of whether you have such a position or not. Reason is obvious.
Wow, to my surprise, there are 3915 stocks with market cap under 100M, according to yahoo screener: http://screen.yahoo.com/b?sc=&im=&p...&pegmin=&pegmax=&gr=&grfy=&ar=&vw=0&db=stocks Google returns 2911 symbols: http://finance.google.com/finance/s...®ion=us§or=AllSectors&sort=&sortOrder=
WOW! From 25% to 100%. Not saying I disagree regarding small caps, but why does IB NEED to outthink "official" rules, on a consistent basis, across all investment classes? Always for the safety of the client, of course.
The way I see it it's them getting problem getting margin. No link to Washington. Just a temporary adjustment, no big deal.
Where will this end?? When nothing and nobody can no longer be trusted?? When society becomes a net loss will people then be happy?? This is a good song http://www.youtube.com/watch?v=JYKWOXtWkzQ
What can you say. IB can see how its customers are positioned. If too many are exposed to stocks that could go to near zero in a hurry, then it does not make sense to expose the firm to losses by margin addicts. Take your high risk trades to Ameritrade or someone else that doesn't care. You have to remember that IB is still mostly a PRIVATE firm, so it's the mans money, not some faceless stockholder. TP is not Dick 'The Dick' Fuld
So if I want to short a stock with a market cap under $100M, I have to have the full amount in my account?