Nothing better than leveraging up long to the hilt first thing in the morning on a down -400 point open and then complaining about getting wiped out!
You haven't mentioned what instruments you were trading at the time. You mentioned futures; given your name, were you in ES only, index options, or something else?
reply to traderNik ES Condors (put and call credit spreads on the S&P 500 mini contract). With the S&P down 50, some of the short side of the puts were at the money.
Quote from IV_Trader: Changing the rules in the middle of the game is traderâs worst nightmareâ¦Iâm very often carrying following overnight PM based positions: Long the stock. Long twice ( or more , depending on deltas) # of puts , then : 87â all over againâ¦Futures are down huge , stock tanks 50% + in pre-marketâ¦broker ârevisits and cuts â margins rules and sell my stocks ( by totally ignoring huge puts profits , because options market is not open yet). Stock bouncing back ( a bit/a lot) before 9:30. I am in the huge loss instead of ABSOLUTE HOME RUN. -------------------------------------------------------------------------------- jimrockord Your facts are not correct. If you held protective puts hedging your stocks, they would have affected your maintenance margin requirements at IB. Your maintenance margin requirement, for each protective put, would have been the lesser of the stock's requirement, or the sum of 10% of the aggregate put exercise price plus 100% of the amount by which the puts were out of the money. My guess is that you don't understand IB's margin requirements well enough to be using margin at IB, and this inadequate preparation is the reason why you got burned. ------------------------------------------------------------------------- Thatâs EXACTLY what is happening with one of my stock nowâ¦stock is tanking in pre-market and my short stock position shows big lossâ¦while long puts are unchanged (obviously). Retard: stop pretending that you know something and confuse ppl will misleading info
Yikes. You figured... You thought... You never heard... in English, you are saying: I was terribly overleveraged. IB adjusted to market conditions, as is legal and probably in my agreement with them. I don't know how to trade or use money/portfolio management Therefore IB's policy is unfair. And probably: "I need to find another broker. That will fix my incompetence.