NexusFi: Find Your Edge


Home Menu

 





IB int margin 30,000usd on Vix oct 17, rip off


Discussion in Brokers

Updated
      Top Posters
    1. looks_one alko with 3 posts (0 thanks)
    2. looks_two choke35 with 2 posts (6 thanks)
    3. looks_3 mattz with 1 posts (1 thanks)
    4. looks_4 TMCap with 1 posts (1 thanks)
    1. trending_up 2,009 views
    2. thumb_up 8 thanks given
    3. group 5 followers
    1. forum 6 posts
    2. attach_file 0 attachments




 
Search this Thread

IB int margin 30,000usd on Vix oct 17, rip off

  #1 (permalink)
 alko 
San Diego, USA
 
Experience: Intermediate
Platform: MC
Trading: All
Posts: 48 since Aug 2016
Thanks Given: 7
Thanks Received: 14

Just got off the phone with IB representative. They are now charging $30,000 initial margin for short position in the nearest vix October 2017 future. CFE margin is 6300.

What a rip off. Can anyone advise a broker for trading Vix futures?


Sent from my iPhone using futures.io

Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Futures True Range Report
The Elite Circle
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Are there any eval firms that allow you to sink to your …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
39 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
The Program
18 thanks
GFIs1 1 DAX trade per day journal
18 thanks
  #2 (permalink)
 alko 
San Diego, USA
 
Experience: Intermediate
Platform: MC
Trading: All
Posts: 48 since Aug 2016
Thanks Given: 7
Thanks Received: 14

Btw, TS initial margin is 2x the regular margin.

What is going on here?!?!


Sent from my iPhone using futures.io

Started this thread Reply With Quote
  #3 (permalink)
 choke35 
Germany
 
Experience: Intermediate
Platform: Other
Trading: ES, YM, 6E
Posts: 2,668 since Feb 2013
Thanks Given: 5,101
Thanks Received: 6,558


From e.g. the 5/17, 6/29, 8/10, and 8/17 spikes the larger brokers know how many customers cannot
afford the risks of VX and produce(d) liabilities. So they are taking countermeasures.

P.S.: Imho you should interpret such safety actions which also protect (other) customers as a clear pro of solid brokers.

Reply With Quote
Thanked by:
  #4 (permalink)
 alko 
San Diego, USA
 
Experience: Intermediate
Platform: MC
Trading: All
Posts: 48 since Aug 2016
Thanks Given: 7
Thanks Received: 14


choke35 View Post
From e.g. the 5/17, 6/29, 8/10, and 8/17 spikes the larger brokers know how many customers cannot
afford the risks of VX and produce(d) liabilities. So they are taking countermeasures.

P.S.: Imho you should interpret such safety actions which also protect (other) customers as a clear pro of solid brokers.



I dont think that margin at 3x the face value is reasonable or a sign of solid broker.


Sent from my iPhone using futures.io

Started this thread Reply With Quote
  #5 (permalink)
 choke35 
Germany
 
Experience: Intermediate
Platform: Other
Trading: ES, YM, 6E
Posts: 2,668 since Feb 2013
Thanks Given: 5,101
Thanks Received: 6,558


alko View Post
I dont think that margin at 3x the face value is reasonable or a sign of solid broker.


Sent from my iPhone using futures.io

In the case of the above-mentioned spikes tripling the margins would barely have been enough to
prevent customers from blowing up their accounts (with all consequences for the broker and other
customers). Now it's multiplier 4.x compared with the CFE minimum - so what ...

P.S.: If you enter e.g. "vix spikes margin call" at Google and look for articles of the last 2 months you
can see how bothered the industry is about adverse events that surpass such precautions by far.

Reply With Quote
Thanked by:
  #6 (permalink)
 TMCap 
Edmonton, Canada
 
Experience: Intermediate
Platform: Various
Trading: Commodities
Posts: 16 since Jul 2017
Thanks Given: 7
Thanks Received: 13

alko, I would tend to agree with choke35 here. I've used IB for many years and do not know them to be usurious or irresponsible as is implied. This is a protective step, both for them, and their customers.

That said, if you do find another broker that accommodates your margin expectations, it would be wise to perhaps look at reducing ones risk exposure per trade.

Reply With Quote
Thanked by:
  #7 (permalink)
 
mattz's Avatar
 mattz   is a Vendor
 
Posts: 2,493 since Sep 2010
Thanks Given: 2,440
Thanks Received: 3,789

We have received recently a bunch of guys who trade VX where their margin has increased.

One of the platforms that we placed them on is CQG whether CQGM and CQG Trader.
Just in case you guys are looking for a platform, please consider it.

I am not sure why certain brokers have increased margins, but I assume this is a result of a few individuals customers who tend to over-leverage and to address that, they need to create general rules that address and affect everyone.

Right now the attitude towards risk is "What Risk?".

Just my own opinion.

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Reply With Quote
Thanked by:




Last Updated on October 13, 2017


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts