Interactive Brokers and their ever changing margins.

Discussion in 'Retail Brokers' started by Craig66, Jun 10, 2020.

  1. Craig66

    Craig66

    After another day of getting orders rejected because I'm currently getting about 3:1 (or whatever they decide on the day) in my portfolio margin account...I want to know, are Lightspeed winding in the margins on their portfolio margined accounts?
     
  2. Robert Morse

    Robert Morse Sponsor

    Hi Craig66 - Although I like answering many of these questions publicly since I provide my direct email, I'm often surprised at the questions asked this way. We still use the OCC TIMS calculation for PM margin for day trading and add 20% to that for overnight positions for accounts under $5mm. Our PM policy has not changed with the market volatility but there are some symbols that from risk might be held higher and there are add-ons for concentrated portfolios. We also have risk shock to limit naked options sellers.
     
  3. Craig66

    Craig66

    Thanks for the answer. I wish Lightspeed had some sort of sockets interface into their system...re-implementing everything into C++ isn't a pleasant prospect. Is there anything in the pipeline?

    The question gets asked this way as a form of public venting, the IB API tells you you have 20% margin, next second, your orders are getting rejected because of some market spike, but of course you get nothing through the API to tell you about the obviously changed margins. So I started calculating the PM for myself so I could track it in real-time. So to undermine that, post Covid meltdown they change the rules almost every day...
     
  4. Robert Morse

    Robert Morse Sponsor

    please define for me "sockets interface."
     
  5. Craig66

    Craig66

    Where you connect to a server using TCP and send messages. Like the old Lightspeed gateway or the IB gateway.
     
  6. Robert Morse

    Robert Morse Sponsor

    We offer the Lime Trading Gateway: This is our only ultra-low latency offering. This is in a hosted environment at the NJ data centers but we can provide VPN access without hosting. This is not a retail offering. Uses C++, Java and FIX. https://www.lightspeed.com/automated-trading/#ltg_ots
     
    Last edited: Jun 10, 2020
  7. Craig66

    Craig66

    But that requires an account size greater than $1m doesn't it?
     
  8. Robert Morse

    Robert Morse Sponsor

    no
     
  9. Craig66

    Craig66

    OK, I'm sure you said that in some other thread. What are the mins?
     
  10. Robert Morse

    Robert Morse Sponsor

    If you want to discuss the cost of the gateway and your trading, I will only do that on the phone or in a private email. I'd prefer a call.
     
    #10     Jun 10, 2020