IB getting really specific on margins

Discussion in 'Interactive Brokers' started by tango29, Jul 7, 2020.

  1. tango29


    I had a chuckle this morning when I checked NQ margins for any changes. I see the Intraday is now $16,500.19, Maintenance $16500.17.
    glv123, murray t turtle and Atikon like this.
  2. newwer


    Has $500 margin brokers ever blown up? They've been around for at least 15+ years as far as I know.
    What is reasoning behind IB's decision to not offer intraday margin?
    The safety argument doesn't make sense since they can always auto-liquidate.
    And its not a profit driven decision because millions more contracts would be traded at lower margins & IB has fairly high commissions - so its like walking away from so much profit.
  3. IAS_LLC


    They know their business, and they know that the ones who need $500 margins aren't the ones they generate commission revenue from.
    VPhantom and murray t turtle like this.
  4. zenlot


    Looks like IB regrets their decision for allowing sub 10k accounts, thus trying to get rid of retail with small accounts.
    VPhantom likes this.
  5. Atikon


    I doubt it, they see RH getting all millenials on board who soon will leave university and want a part of that. They must be the safest broker out there, I'm getting my buying power reduced on both wings of my Iron Condors (both equal Strike width). I'm really looking forward to schwab improving a thing or two on TOS and open it to EU clients.
  6. They dont know jack, this was the same firm that didnt know about negative prices in CL.

    Setting Intra day margin levels higher than the exchange overnight/weekend levels is ridiculous.

    Clearly they no longer have any faith in the auto liquidator they use to manage risk.
    murray t turtle likes this.
  7. Overnight


    Looks like their margin levels are a match with the CME minimums, not over. CME NQ minimum is currently $15,000 maintenance, $16,500 initial.
  8. These $500 firms must rely on auto liquidation.

    The blow up would happen when no liquidation is possible and the market moves fast or gaps.

    eg Globex outage, Gap down after first limit down, Firms own Risk management system outage.

    Also most of these $500 margin firms are privately held.

    We dont get to know how close they have come to blowing up over last 15 years.

    How much did they lose in the recent CL negative flash crash?
    Last edited: Jul 7, 2020
  9. Atikon


    idk what 500 USD brokers mean, but you can get into IB with a cash account starting at 500 USD. Those +500 CFD Brokers from Investopedia nealry blew up in 2020, had to send Earnings Warnings bc of too many ppl getting it right/them taking the other side of the trade
  10. Don't forget the $500 margins are for very liquid futures. Es ym etc.
    Auto liquidate works just fine but accounts that are reaching their minimums are being monitored and can manually be liquidated

    And there's no stock trading at these firms so it's easier to manage the account.

    bottom line IB just doesn't want to deal with it cuz it be a way bigger headache for them.

    Amount of different securities being simultaneously traded with different margin requirements stocks vs futures options pink sheets whatever
    #10     Jul 7, 2020