will you let go Mr MBA? Just to put an end to your endless IB hate speech, your point on debit spreads is already wrong. What if the options are American-style? Are you still claiming that risk is ALWAYS limited? Sounds like we need to send Sig with his special MBA in to re-structure the company. Goodness, MBA fart trying to piss in the shoes of a market veteran like Peterffy (you even spelled his name wrong, moron).
Your attitude is less than ideal. If I ran a brokerage firm, I would be relieved when customers like you went elsewhere. Admittedly, I've had a handful of less than ideal experiences with customer support at IB, but in the majority of cases they have been helpful and professional. Some of the representatives there are quite good.
You're right, fire all your customers who nicely request that you explain your incoherent policies instead of perhaps looking at if the policies make sense. Great idea, if they dare point out that his royal highness is wearing no clothes they clearly have a less than ideal "attitude". While you're right, there are clearly a few good employees at IB, my impression is that most of them would be relieved if all their customers "went elsewhere", that's certainly the "attitude" I get from them. It's interesting, I've started and run two companies, and never treated my customers like that. In fact I've learned far more from my customer's questions and complaints than the happy customers. And eaten the lunch of my competitors with this "we've been doing it this way for years, we're far more experience than you, who are you to question" attitude. In fact an industry where that kind of attitude is pervasive is one I see as ripe for disruption. But then what do I know, according to you I'm "retarded". And still waiting for an explanation for just the two representative policies I listed, I'll refresh you here: -Can you explain why a debit spread on ES, where I've paid the full premium in advance and can never lose more than that premium should charge margin at IB but no other broker? -Can you explain why a 5 point SPX credit spread, which can never lose more than 5 points, should be treated as if it could lose 7 points when the bid/ask goes out of whack which results in autoliquidation of a position that was never leveraged and was literally impossible to lose money on beyond the 5 point risk? I'll add that I can fool this system by putting in my own offer for 1 contract right past the 5 point mark and it instantly goes back to thinking it's a 5 point max loss, even though nothing in the real world of risk has changed.
Amazing that you would attempt to personally demean this poster because of his views about the broker you have chosen to use. He is not insulting you. And IB is not a religion.
Why are you still bickering? I thought you changed brokers? The debit question was answered but I guess you have me on ignore.
Well then maybe you should check on the background between me and him. He claims he is some hotshot MBA (from a school he keeps top secret) who reportedly changed brokers but just cannot let go of his experience with IB. IB is just one of the brokers and ECNs I use. Are they perfect? No, but this guy keeps on firing from all cylinders as if IB was responsible for his losses. Someone who shoots needs to be able to take as well. I just find it hilarious how he goes on attacking everyone and everything but then pretends to be a girl when someone shoots back. And some of his questions have been addressed and answered. He is just too arrogant to admit it. Sorry, I just can't stand people who cannot admit when they are wrong.
I'm sorry IB is charging you an exposure fee, and I'm sure it feels unjust. However... I am an IB customer and I keep most of my trading capital at IB. So I am in favor of IB doing what they need to do, to prevent some people from over-levering and putting the firm at risk. Think about the notional value of the contracts you're trading, and compare it to net liq of your account... and also consider IB's margin borrowing rates (highest of the blended rate formula is just barely a touch over 2% right now, if I recall correctly..).... I think IB is perfectly reasonable here.
It's not a matter of it being unjust. It's a matter of it not doing what it purports to do. No one has a problem with a company being prudent in risk management. As the OP clearly detailed, IB is being ridiculous in the matter of some not very risky assets and completely ignoring the risk in many other classes of far riskier assets. That should concern someone like you.
As has been said a million times on this thread now .... Its NOT what you, your friend, your dog think is or is not a "risky asset" Its NOT (or at least not entirely) down to activities on your account It IS down to the fact you are playing with leverage using the house's money. Therefore: (1) The house (be it IB or anyone else) entitled to set their own rules as to what you may or may not do with their money. (2) The house needs to take a bigger picture approach. They need to take into account their overall firm-wide exposure (both "live" active exposure as well as what theoretical level exposure they are prepared to take at any point in time). As has been said by many people on this thread. IB has publicly stated they are "conservative" in their risk management. Don't like conservative risk management ? Go elsewhere. But please don't come here and moan. Its a bit like going to Israel and complaining you can't find any decent pork or shellfish on the menu !
Amazing that you are such a prick. Sig is just spouting off calling people morons left and right. And then I say I wouldn't want him as a customer and then you call me demeaning. Please shove off. I never said IB was perfect but IB's service is a major reason that I am profitable. And its customer service is not as bad as Sig makes it out to be.