had most hated auto liquidations on 27july23 at 1546ET. So it hopefully won’t happen again, l should be grateful if you can inform me if my understanding is correct: 1. Excess liquidity (defined as a. excess equity over maintenance margin or b. equity with loan value - maintenance margin or c. the amount of margin cushion you have to maintain your current positions.) must be => 0, if falls < 0 then the soft edge margin gives you up to a margin deficit up to 10% of net liq (or equity with loan value). If this 10% SEM is infringed (when margin deficit 10% or higher than net liq) then >can< be immediately liquidated (but might not be?). If this Soft edge Margin is still infringed from 1545 ET onwards then auto liquidation will occur before 4pm ET. 2. Is this 10% SEM deficit same as the 10% cushion that can be set as a conditional order? 3. Why was it when l tried to roll out a naked NDX put, 15610p, in trade 1, where I traded a broken wing put butterfly 15630p x-2 15610p x+1 15430p on July 27 1051:19, to rolling it out and down to 28july 15600p at a credit, it wasn’t allowed, because of a margin deficit, even though the trade reduced margin or buying power requirement? l would understand this restriction if margin requirement was increased but it decreased margin requirement. 4. Is margin changes with risk navigator, ‘what if’ ? The easiest way to see possible margin deficits and impending liquidations. Please give me the relevant video, websites to help prevent IB auto liquidations. considering setting up conditional order/s to reduce margin if margin cushion becomes <= 10% . Thanks for information
What else did you have on at the time? I've had instances where I had options expiring worthless that same day but the underlying had creeped a bit closer and IB started acting like they would be assigned, which could create a post expiration margin deficit in their model. When the margin model gets into that mode (even erroneously) it may start trashing the rest of what you have sitting out there. It doesn't necessarily show on the look ahead number, but the "check margin" for certain trades will start to show a post expiry deficit.
Thanks ktm, even though l had other positions at the time, the fact that rolling out and down the puts would reduce buying power (even though marginally, like 3 figures?), the trades should of still of been allowed to go through? wheres the "check margin" to show the post expiry deficit?
On the order ticket, if you click on preview it should be on the right. Sometimes on mine in the last hour of the day I get orders rejected for projected post expiry margin deficits. It's also an option on your account window if you have it selected to show (in the margin requirements window - post expiry margin @ close).
%% Sounds like its a good thing,NOT that i want to learn everything the hard way. In other words, the stage coach driver that drove closest to the cliff never got the job. Especially since the bigger trades[excess risk]could result in a bigger profit for brokerage; auto liquidation = good thing.