i have a couple of questions about E-trade: 1. does their portfolio margin offer leverage like OCC TIMS? Or is it more restricted like IB's? 2. they stated that for a margin call, they can liquidate without notifying the client. in practice, do they actually do this like IB does?
-Every Prime Broker in the US offering Customer Portfolio Margin uses the TIMS calculation to shock a portfolio and come up with a minimum haircut calculation. Every Broker can ask for a premium for securities with higher volatility or during market condition that warrant higher margin, at their discretion, with little or NO warning. These online electronic brokers can't staff themselves to call every client who pushed margin requirements. READ ***below: (p) Lien and Liquidation; Remedies Except for Securities and/or Other Property in retirement Accounts, I agree that all Securities and/or Other Property held in my Accounts (including those Accounts held by me with affiliates of E*TRADE Securities) and all rights, whether due or not, that I may have against E*TRADE Securities will be subject to a first, perfected and prior lien, security interest and right of set-off and held as security by E*TRADE Securities or its affiliates for the discharge of any indebtedness or obligation I may have to E*TRADE Securities, however such obligation may have arisen. ***Except for Securities and/or Other Property in retirement Accounts, I understand that E*TRADE Securities, to the extent permitted by law, may at any time and without giving me prior notice, use, liquidate and/or transfer any or all Securities and/or Other Property to satisfy any indebtedness or obligation to E*TRADE Securities, however such obligation may have arisen. In the event of a breach or default by me under this Agreement, E*TRADE Securities will have the rights and remedies available to a secured creditor under all applicable laws in addition to the rights and remedies provided in this Agreement.
come on, so NOBODY here uses E-trade with portfolio margin???? i guess this confirms my belief that 99.9999% of ET are small fry