IB - Risk Management in Spikes

Discussion in 'Risk Management' started by tyrant, Jan 30, 2007.

  1. tyrant

    tyrant

    Hi,

    How would risk management parameters employed by Interactive Brokers handle a large sudden spike in prices caused by errorneous orders or a sudden/crisis event during either normal trading hours and off hours? For e.g., ES spikes down 100-200 pts caused by a sudden news/event or an error which lasts less than 1 minute and traded back up to its pre-spike levels. Will that trigger off an automated closing off of existing positions because margin requirements were breached for the brief 1 minute?

    Thanks
     
  2. ids

    ids

    We do not liquidate immediately upon violation. There is 10 minutes grace period.