IB - auto liquidate part of positions outside RTH even that would cause an increase in margin?

Yes, and I referred to this case earlier.

 

JKG77,

It is a good catch. Gross Position Leverage auto-liquidations could result in the margin increase.

 

Thanks ids.

 

Indeed.

I'm developing the fanciful and counterintuitive theory - admittedly with, so far, only two examples supporting it - that there's actually an inverse proportionality between how good a broker is, overall, and how they represent themselves in trading forums.

I like and trust IB but undeniably they sometimes "present" here pretty badly.

On the other hand the FXCM representative, Jason, is outstandingly helpful and an asset to any forum (and we all know what they're like as a brokerage.)

 

An interesting theory. The better the broker rep (and thus broker), the worse their typing skills? Well, from a side-angle that could work. After all, they are spending so much time being a good broker rep, and studying the company they represent, the less time they have for the non-relevant bits such as being a better typist. I dunno, your counter-intuitive theory is counter-intuitive to my intuition. But that does not mean your theory is invalid. (I just gave myself a headache. Ow. )

 

JKG77,

Here is a bit more on the topic. At one time we did auto-liquidate on this but we do not any longer. While it is used as a pre-order check and we will not accept an order that violates the initial GPV ratio, we simply monitor if the higher, maintenance GPV is hit and contact the client if we think it necessary for them to act to reduce.

 

@ids: That's great. Thanks for the further info. Coming from the FICC OTC background, I was very much used to high notional derivative books with no problem at all if properly hedged. That's why it could be so easy for me to run up large gross exposure with IB ever since I started trading actively after I retired. Good to know those rules clearer. Thanks.

 

Hmmmm!

http://www.cmegroup.com/notices/disciplinary/2017/03/CME-15-0158-BC-SAXO-BANK-AS.html

 

No surprise there. 'Saxo-Bank': even their name is deceptive.

 

It wasn't clear to me that they actually got in trouble for the autoliquidation, or simply that they misidentified that a human entered the trade instead of an algorithm. If it's the former than IB ought to be really worried. If it's the latter than it's more of a yawn.