These are all stocks from financial industry. When these collapse lots of other non-financial stock will follow. Strange that IB makes such a selection. Some companies in the list are very reliable and have nothing to do with current mini-crysis...
as crast as stock777 is, he is correct. To be heavy margined in this Vol. is a stupid ass move. Why should IB and it's "Larger" traders absorb the risk of all the "YAHOOS" with 2k on margin, trying to make a living trading? Ohh, I forget, this is ET, the land of SOCALIST TRADERS. I forget that any rational cut back in "Margin" during uncharted waters is a crime. Play options...cheaper, less risk and you get more "bang for your buck". per sa. Unless you go "naked" and then again, I'm sure most of ET would love to go "Naked" on Margin, huh?
What does that have to do with anything? Remember Monday morning what they did to PNSN and MF? It's a panic, and you dn't need it down very long to leave a hole. And the pikers arent' the problem. Joe Lewis tooka pretty good hit. I t can happen to anybody. If he can do it on cash, they'll be guys of size do it on margin.
Thats fine, I could care less about your trading and your financial losses. If you take a gun to your head and blow your brains out I wouldnât lose any sleep either. So there we are even. I do take exception to your thoughtless and rude comments that what I am doing is "gambling', it isn't but I guess perhaps you were not brought up with the social and cognitive skills to think about what you say or to avoid needless controversy. Perhaps your young enough that your parents can try to finish the job. For me your comments make you sound new to trading and immature. Regardless you may have the ability to learn something. If so then this will help you. 1. Just because someone uses margin does not in itself make them gamblers. 2. As I must assume you have no idea how often I use margin you have no idea how conservative or aggressive I (or anyone else posting in this thread) is. 3. You may not have been told this but in this business risk of loss regardless of the amount is a possibility and if you consider it gambling than perhaps your better off with a passbook savings account where you will not be at risk from others 'gambling' 4. if your a retail trader which by your comments you sure appear to be your funds are guaranteed beyond what IBs ability to pay you back are. 5. There are people that are called 'professionals' they have a thing called a 'series 7'. (stock 777 you can find out more about them by asking around) These people often trade greater than 4x intra day (3 x short) that IB used to offer. Perhaps in your world they are all gamblers when they use margin but I , all the states, and the Federal government disagree. Maybe EVERYONE is wrong but you. I feel you should really think about spending your time at the yahoo stock boards. Your thought process and demeanor would be more inline with the others there. Of course if youâre here on ET so you can learn then maybe stick around and do more reading than posting. I wish you a very good day also.
I won't waste too much of my time responding , other than to say, every gambler thinks he's got it under control. Then when he/she loses their house, car, spouse, finally admit their problem. Hope that's not you. The bottom line is, if IB thinks there's a reason to change margin requirements on any and all instruments, I trust their judgment. I suggest you do the same.
Back on topic here, folks! They also cranked up the margin reqs on futures. During today, intraday margin was equal to overnight margin, and the initial was about 30% higher than usual. I wondered what was going on, and just decided to trade smaller without looking into it. Now I know what the problem is!
I wonder if other brokers have been doing the same with leverage? If not then whats different about IB right now? As I understand it IB has putting a lot of effort lately to tell the world that they are financially sound (something that I think BSC did not long ago as well) I do have to believe a lot of traders have blown out to the point of owing IB money or nearly so for IB to change the rules. (I doubt they said 'Hey we need to lower the profit so lets figure out a way to lower the volume') I don't know as I would assume most here don't know the financial spot that IB is in but I don't worry about it. If IB were to go under the SIPC I believe will be cutting me a check (if they can't then we all have some serious problems beyond our brokers account) While I daytrade I use leverage on average less than twice a month so while this new IB rule may not effect me much its just feels like another 'jerk the customer around, we don't care' attitude that I feel IB displays so often. (I didn't get an email about the changes did anyone else?) For the record I would guess that while IB may or may not have taken some hits they are as strong as anyone else out there. Also, should IB be able to change the margin requirements at any time for any reason?? YES. Should I or anyone else be able to move their money to another broker that they feel offers a better value? YES
1reason, how much cash up front would it take to get you to move your account? I think we could raise a tidy sum, and just knowing you were no longer a customer would be a great relief to many.
IB just raised Visa margin to 100%, funny cause it was still 25% yesterday on the ipo day. I had forgotten just how important 4-1 is to my trading.
Thanks for saying I am important, but your wrong on that as your wrong in most of the posts I have seen you post. Perhaps you should think a little bit more before you post. Seems to be a pattern for you. ou do put more thought into your trades (if you actually trade, writting covered calls on your GE stock does not make you a trader) than your posts don't you? I don't think you even trade and if you do I think your a loser. Of course you can prove me wrong by posting your results on the P/L but like all the rest of your useless bullshit you can only try to make people feel like you do after looking at your statement. Thanks for the fun(you sure are an easy target), and I look forward to seeing if you have the stones to post your blotter results loser.