IB Margin Changes

love the last sentence! that's part of the reason i am over a decade with ib.

keep up the good work guys.

 

I know the answer but as you can see Def has a problem to admit it but he wouldn’t go on the record to deny it as well.

By the way Timbar Hill does not have to be on top to get those liquidated shares at distressed prices. Based on the IB agreement Timbar Hill gets a preference, as long as they “match” the highest bid price available at that second, they will get your positions (which is obviously a bargain when it comes to options and there is a huge spread. They will get for significantly lower then market/midpoint value).

 

does IB disclose to customers when Timber Hill profits from an IB customer's reckless use of leverage?

sprsptd, do you also work for IB?

 

As you can see Def is dodging the question, I think they should hire Herman Cain to answer this one…..

But seriously Def, can you come clean on this one? I will repeat the question for a 6th time.

--Would you go on the record stating the Timbar Hill has not been PROFITING from buying options/futures from IB accounts that got liquidated on the bid price or distressed price (however you want to call it) and then selling it back in the marketplace?

ITS A SIMPLE QUESTION YES OR NO????

 

I doubt they would disclose that information.

I don't work for IB, but I've traded with them for over a decade and they are partially responsible for my success. They've always done right by me and their auto-liquidation policy is a good thing in my opinion.

 

Hi Def,

If IB is forced to liquidate a position, does the system pull out spreads or simply liquidate each position individually. For example say a customer has several option butterflies in a stock. Will the system know that they are butterflies and send an order to liquidate as a spread or simply offer each option individually?

 

yeah, you might as well kick over a chess board if you are going to let a computer liquidate spreads, strangles, pm accounts, anything other than straightforward, one-sided Reg T trades

 

In order to manage RISK (and Timbar Hill making a nice profit..?) all orders are done separately.

 

Jack, I followed your advice and called up Infinity to check their liquidation policy, here is what they say. If you are in a margin deficiency you have time to take care until end of the day and they will not liquidate you. If you are in margin deficit overnight they may take action.

 

I don't think anyone but IB does it. That's why it takes so many people by surprise. There's no precedent.