IB Margin requirements rising as VIX falls, reaching nonsense levels

Discussion in 'Interactive Brokers' started by cruisecontrol, Apr 9, 2020.

  1. Fain

    Fain

    every client I’ve talked to that wanted to sue for my risk department changing their margin didn’t go anywhere with it.
     
    #81     Apr 26, 2020
  2. tomas262

    tomas262

    I tell you IB is fucking crazy with their margin policy. Example

    CME Milk Class III Nov 20 - Dec 20 intra-delivery spread maintenance margin: 840 USD / Interactive Brokers: 1,333 USD (why not double?)

    As the initial margin IB requires: 4,566 USD while my other broker goes with CME to 924 USD.

    4,000 USD move per contract is the entire calendar year move in this product so it is totally off

    It goes across all products.
     
    #82     May 1, 2020
  3. ids

    ids

    IB does not want you to acquire low liquid far expirations. Hence, high initial margin. Go to the other broker and collect this stuff there.
     
    #83     May 1, 2020
  4. Arnie

    Arnie

    Or maybe no ones has faith in the brokers/clearing firms on the other side of the trades?
     
    #84     Feb 21, 2021
  5. Sig

    Sig

    If that's the case we would see a whole lot bigger indicators in the market than IB showing unreasonable VIX margins!
     
    #85     Feb 21, 2021
  6. Wow, awesome thread. I had shorted some VIXY at high prices, made some money. But the lower VIXY went, and the more I made, my free cash, buying power, etc. kept going DOWN. I literally almost got margin called, had to sell the position and take the gain.

    This, and poor recent customer service, has really soured me on IB in recent times.
     
    #86     Feb 21, 2021
    shuraver likes this.