IBKR - NOTICE OF AMENDMENT: Interactive Brokers LLC Client Agreement

Has anyone found out what's new and or different in this new version yet?

https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=3203

 

At any point interactive brokers can claim your first born as part of a margin call.

 

I have 3 kids luckily so well hedged

 

A real hedge is a boy for a girl.

 

In today’s world they can be interchangeable if they wish it to be.

 

Banter on the side, what is my kids' inheritance confronted with when looking at this agreement compared to the last?

 

I read all the relevant changed sections. One thing I noticed was that if you couldn’t afford an options exercise or assignment, they could sell or close or lapse your contract if they felt like it near expiry.

 

I thought they did that already!

 

I haven't experienced this. But because I trade option spreads, I'm curious to know whether IB has ever overreacted to losses on a single option that is protected as part of a two-leg spread. I'm most concerned about diagonals where a longer-dated position is protected by a soon-to-expire position. In a worst case scenario ... IB liquidates the soon-to-expire position followed by the market turning, and the value of the longer-dated position is reduced. That would unnecessarily increase the gap/loss between the legs of the spread compared to closing the spread trade as a spread ... both legs at the same time.

 

Take them, take them!! They are the biggest liabilities ever and have re-sale value of zero. I will be going into margin calls deliberately if this is really IB's policy. LOL