Multiple accounts in IB, Will one margin impact the others?

Discussion in 'Options' started by cambridgesoho, Nov 17, 2018.

  1. #21     Nov 19, 2018
  2. #22     Nov 19, 2018
  3. qlai

    qlai

  4. Sig

    Sig

    I'd be surprised if any broker was willing to give you full margin capability in an LLC or corporate account without requiring you to either demonstrate that the corporation had significant assets or provide a personal guarantee.
     
    #24     Nov 19, 2018
  5. I saw your other message in which you wrote that IB told you that the margin requirements are reported on a per-account basis.
    But I'm not sure how IB would respond if one of your accounts would go under. Meaning that you would get a margin call on that account and are unable to respond in time. Would IB really let that account go down and swallow the loss and not touch any of your other accounts? I find that hard to believe. I think that they will do whatever they feel necessary for them to protect themselves. Thus: taking the lost money from the remaining accounts. I don't think that IB is that generous that they let you blow up an account and have IB cover the damage done.
     
    #25     Nov 19, 2018
  6. qlai

    qlai

    I have Portfolio Margin account with IB. There's minimum to qualify, but I don't believe I signed personal guarantee. My corp has no assets. I also have personal account with them. I have account with Advantage Futures and I opted out of signing personal guarantee, but I promised to close positions at the end of the session(also maybe higher margin requirements, don't recall).
     
    #26     Nov 19, 2018
  7. qlai

    qlai

    Forgot to mention ... The Corp account I can split into multiples. it's very easy, you just do it online by adding a trader and allocate BP to it. It has its own account number which is great, especially when using API.
     
    #27     Nov 19, 2018
  8. Sig

    Sig

    In that case the rational thing to do is to open a whole bunch of special purpose entity LLCs, take opposite risky positions before big events and declare chapter 7 with all the losing entities?
     
    #28     Nov 19, 2018
  9. qlai

    qlai

    I don't think it's easy to open multiple Corp accounts for trading. Both the bank and broker will be on you. But I have heard of people opening an account and leveraging up on a lottery trade. When you are young you have little to loose and can come back from almost anything ;)
     
    #29     Nov 19, 2018
  10. #30     Nov 19, 2018