Right... Well, why not $1 or $10? or? Their proprietary algorithm determines it, so it can be any number?
As I said, I've been trading for over a decade, but I've never seen this. And the leverage thing is actually a good thing, since small accounts have a much higher chance of blowing up. But you need to be able to handle big accounts.
It's good up to a limit. In the end risk should be shifted more to traders and not brokers. Brokers should be middlemen, as they were initially.
Thanks, interesting but long thread. There's another thread at reddit which explains that whenever you make a trade you can see if it impacts your exposure fee. I checked it and it is displayed e.g. in the order preview window. One of the things mentioned in the Elite thread was: IB says "Exposure Fees only apply to a small minority of IB customer accounts with unusually risky positions." But I have been doing this for a long time, and never have I been charged this fee. Strange... One thing that's different is that I started withdrawing money from my account...
Yeah, it's funny, I've blown up many accounts and took on very risky positions again and again, but never have I been charged this fee before.
The instruments you trade had risk reassessed. I've never blown up depending on the definition but I've still gotten that tax.
I'm trading the same instruments I've been trading for years NQ futures (of which the margin has increased dramatically over the years BTW). I've stopped blowing up accounts though, instead starting to withdraw money.
%% Good points; leverage risk warning + good = its a good idea for the broker protection + stockholders protection. I w as reading a business book ''Harder I work.....'' Joe Ricketts , when he was building AMTD + 1987 crash\ some of the[stocks] margin accounts they sold were above selling price shortly afterwards, , fast rebound move then . And some1987 crash accounts \they sent FEDX margin call warnings , but never had to be liquidated, because of the fast rebound [Those must have been better, best customers or those maybe $1 around margin sell area??] interesting...........
Did you increase the number of lots you trade? If you became profitable vs losing, i would guess you must have.