Interactive brokers forex margin trading vs
So, now I know for a fact that Interactive Brokers reports the pre-settlement balance, rather than the post-settlement balance. As a result, Quantopian has attempted to place multiple orders today which could not be filled because I did not have sufficient settled cash.
Is there any way that Quantopian could be configured to get the settled cash balance rather than IB's "total cash" value? I can't see any way to reasonably get this data from within my algorithm, and having this disparity actually causes problems for my algorithm and could cause problems with IB as well , which is rather unfortunate.
I would be surprised if the same does not apply to your situation. You may need to ask a different rep. I'm actually a little surprised by this as even though I am a relatively new investor, I know my e-trade account allows me to use unsettled funds immediately as long as I have enough in my account not including the amount made by the sale to cover the amount I'm trying to buy.
The only stipulation is I can't sell those newly purchased stocks until the funds have settled "officially. Having cash holdings makes sense, but IB is sort of a sandboxed account specifically for algorithmic stock trading and not necessarily for "safe" investing. I keep my cash holdings in other accounts that are intended for cash holdings. I certainly wouldn't put my entire life savings into IB to be managed by Quantopian, nor do I even keep a significant portion of my stock there.
This is an experiment, and I'm never putting up more money than I'm willing to lose. Also, even maintaining a cash buffer doesn't help my particular algorithm; on one day it might decide to dump all holdings, and then repurchase an entirely different set of holdings. And it might do this on a daily basis. I've had this happen a few times as well, the message from IB is that you will either need to deposit more money, or hedge your positions.
IB doesn't do margin calls, they just reject orders; this is good because you won't be in violation of any regulations, but it's bad if only one leg of a multi-leg strategy executes and leaves you over-exposed.
Yeah, I'm planning on adding a margin account at some point. It'd still be nice if the portfolio object reported available cash separately from expected cash value, though.
Sorry, something went wrong. Try again or contact us by sending feedback. Hi Everyone, I have one problem with Interactive Brokers Any suggestion would be appreciated! I am pretty sure that this problem applies to all brokerages, not just to Interactive Brokers. Hi, It is true that Quantopian should work with other brokers too.
Cash holdings are a safety net against bad trades, and not a trading strategy on their own. Please sign in or join Quantopian to post a reply. Already a Quantopian member? Algorithm Backtest Live Algorithm Notebook. Sorry, research is currently undergoing maintenance. Please check back shortly. If the maintenance period lasts longer than expected, you can find updates on status.
Sorry, something went wrong on our end. Please try again or contact Quantopian support. You've successfully submitted a support ticket. Our support team will be in touch soon. Send Error submitting support request. Build your first trading algorithm on Quantopian. The exact pricing structure for canceling orders is opaque and not easy to understand.
Order cancellation fees are off-set be executed trades, but the problem occurs when total cancelled orders exceed the number of executed orders for the day. Very few brokers charge for oder cancelation, and IB is one of them. At The Options Bro, we like to put on a lot of futures positions and short options positions, and IB was not happy with this. IB is not paying employees to actively look at the risk of all of their client accounts.
Instead, they have an algorithm that determines the daily exposure fee pricing and charges clients accordingly. We held this exact same position with three different brokers and there was no problem with the margin risk team at all — IB was the only brokerage firm that gave us a hassle.
We this said, we had an account with Interactive Brokers for approximately three months, and it was the worst three months of our lives — seriously. Not only were we charged a bundle of stupid fees, but we also had several of our positions auto-liquidated that resulted in moderate losses.
In one instance, we had too many futures positions in our account, and our margin buying power temporarily went negative due to futures exchanges raising the margin requirements for their products. IB did not provide us this courtesy. This causes more forced selling and an eventual account blow up. Options spreads can often be very wide for a number of reasons.
Plus, if you think the daily exposure fee for out short futures position is a gyp, the daily exposure fee for short options positions is ever worse, because the theoretical losses are much greater — if not unlimited. Our aim is not to speak negatively of Interactive Brokers. Rather, we are merely trying to state the facts and expose the truth. And in this case, the truth is that Interactive Brokers is simply a bad choice of options and futures traders.