Why cant IB allow shorting of BTC futures with a margin requirement of 500-1000%?

Discussion in 'Retail Brokers' started by Daal, Dec 8, 2017.

  1. Daal


    Why outright block it instead of putting in giant requirements? I mean, in theory, the Straits of Hormuz could be bombed and oil would open at $300. But you can still short oil futures
  2. truetype


    As mentioned on another thread, CBOE sources say TradeStation, Advantage, RJO are offering the product to retail investors. (Assuming you actually want to trade, rather than just b¡tch.)
    Last edited: Dec 8, 2017
  3. Overnight


    If the Straits of Hormuz were "bombed", oil would not run up to $300 per barrel. The Straits of Hormuz is not a keystone in oil supply around the world anymore. US and Canada are fracking the hell out of it all. Don't forget all the current floating storage currently out on the oceans!

    But at least oil does have some fundamental balance between give and take in the long run. Bitcoin has none.

    Put in giant requirements for BTC and nobody will trade it. Put in too lax of a requirement and it could kill everyone. Moderate it, and things will be fine. Consider all of this a knee-jerk protection move against an unknown. I applaud it in a sense, but the next calendar quarter will start to reveal the leaks in the dam, if there are any.
    ET180 likes this.
  4. Robert Morse

    Robert Morse Sponsor

    And Wedbush
    patrickrooney likes this.
  5. comagnum


    Bitcoin futures shorting will require a 35% margin (5x BRR). - at today's Bitcoin (BRR) price the CME margin would be $28,086, your broker may set a higher rate. The tick will be $25. This is what I found anyway, it may change.

    Nice to finally have a way to trade Bitcoin in the U.S. in a regulated market, even the Forex brokers (regulated) don't have any Crpto pairs - I guess they have higher standards (hehe).

    Last edited: Dec 8, 2017
  6. Daal


    Why cant they put a giant req on the short side ONLY. I would trade, regardless. I got plenty of free margin. I'm sure others would too
    Shadetree42 likes this.
  7. They could, but it would be ugly looking.
  8. Robert Morse

    Robert Morse Sponsor

    I find it interesting, that Peterffy does an interview with CNBC. In one comment he says he will not allow shorting because if Bitcoin spikes, there might be no reasonable place to buy in their customers. In the next sentence, he says Bitcoin is going to near zero in 4 years.
    patrickrooney likes this.
  9. southall


    Bear market spikes are the most volatile.
  10. Robert Morse

    Robert Morse Sponsor

    At what point was bitcoin in a bear market?
    #10     Dec 8, 2017
    Stocktracker likes this.