margin can change all the time since it is calculated in realtion to volatility
so you need to check on a daily basis to make sure what it is
there is a set amount of margin required to trade - but some brokers will cut that amount
and during the normal trading hours when stock exchanges are open margin is normally charged at 50% of the normal rate
then once you are in a trade already - the margin amount to continue in the trade is then another amount lower
if you think about it - this is important since you might enter the trade with a margin of say 1,250 for the ym, and just have 1,250 in your account ( not possible as this is probably below the minimum amount you need for your account to operate - but the figure is just for the example) - the second the ym goes against you - you would be making a loss and therefore the value of you account would be below the 1,250 and you would get the trade closed -
to stop that happening - you are allowed to have a margin of say, 1,000 once you are in the trade - so there is a margin amount to open the trade and then a lower margin requirement once the trade is open, so as long as you stay above 1,000 - the trade will stay open - but if you close that trade and have less than 1,500 in your account - you would not be able to open a new trade
watch out for variances in timing of when the 50% margin applies - and check the time it finishes - quite often a period before the close - but also some brokers offer very low margin amounts which offer incredible leverage - dangerous if you are losing - great if you are winning
so you need to check on a daily basis to make sure what it is
there is a set amount of margin required to trade - but some brokers will cut that amount
and during the normal trading hours when stock exchanges are open margin is normally charged at 50% of the normal rate
then once you are in a trade already - the margin amount to continue in the trade is then another amount lower
if you think about it - this is important since you might enter the trade with a margin of say 1,250 for the ym, and just have 1,250 in your account ( not possible as this is probably below the minimum amount you need for your account to operate - but the figure is just for the example) - the second the ym goes against you - you would be making a loss and therefore the value of you account would be below the 1,250 and you would get the trade closed -
to stop that happening - you are allowed to have a margin of say, 1,000 once you are in the trade - so there is a margin amount to open the trade and then a lower margin requirement once the trade is open, so as long as you stay above 1,000 - the trade will stay open - but if you close that trade and have less than 1,500 in your account - you would not be able to open a new trade
watch out for variances in timing of when the 50% margin applies - and check the time it finishes - quite often a period before the close - but also some brokers offer very low margin amounts which offer incredible leverage - dangerous if you are losing - great if you are winning
Thanks Lads
I do not have hold overnight, but it is best not to be under funded so I think I will work on $2k per contract.
When ever I win more than 10k or over 200% in a month with finspreads, strange things happen to my trading, the quotes take ages and bear no resemblance to the market. This is why I want to trade the real thing.
I do have a couple more questions if you don't mind.
Are all IB accounts in dollars, my bank makes quite a bit on conversions about 4% plus a fee, is there any way around this e.g. having a dollar account.
Also can you phone IB to place a trade if internet connection is lost
Thanks in advance
I do not have hold overnight, but it is best not to be under funded so I think I will work on $2k per contract.
When ever I win more than 10k or over 200% in a month with finspreads, strange things happen to my trading, the quotes take ages and bear no resemblance to the market. This is why I want to trade the real thing.
I do have a couple more questions if you don't mind.
Are all IB accounts in dollars, my bank makes quite a bit on conversions about 4% plus a fee, is there any way around this e.g. having a dollar account.
Also can you phone IB to place a trade if internet connection is lost
Thanks in advance
IB have their own exchange contract - IB Ideal. Heve a look at Resources, Products Exchanges.
http://www.interactivebrokers.com/index.html
ps. the account is opened your "home" currency.
http://www.interactivebrokers.com/index.html
ps. the account is opened your "home" currency.
This thread will answer all your IB currency queries.
http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=6438&highlight=dollars+or+pounds
http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=6438&highlight=dollars+or+pounds
fillyerboots
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juanbyte,
You can fund in Sterling and trade US$ products no problem.
Give them a call on 0207 397 6422 if you want more info.
You can fund in Sterling and trade US$ products no problem.
Give them a call on 0207 397 6422 if you want more info.
fillyerboots
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Juanbyte,
They don't hand hold and you couldn't call them a full service broker.
Helpdesk is in Switzerland not UK, but there is a toll free number.
I have used it twice, got through pretty promptly. I think in the past help desk has been the weakest part of the service. Have a trawl around the boards, generally support feedback is positive now.
They will charge you a higher rate to execute a trade over the phone if you lose connectivity though.
They don't hand hold and you couldn't call them a full service broker.
Helpdesk is in Switzerland not UK, but there is a toll free number.
I have used it twice, got through pretty promptly. I think in the past help desk has been the weakest part of the service. Have a trawl around the boards, generally support feedback is positive now.
They will charge you a higher rate to execute a trade over the phone if you lose connectivity though.
Hi Juan
YES - Their trading platform is c**p. So much so that others write their own front ends for it.
If you wan't to see what a good platform looks like, see the Speedtrader Demo (free, full version for 7 days.
On second thoughts, don't go and look at it or the IB platform will irritate you even more after seeing Speedtrader.
Darren
YES - Their trading platform is c**p. So much so that others write their own front ends for it.
If you wan't to see what a good platform looks like, see the Speedtrader Demo (free, full version for 7 days.
On second thoughts, don't go and look at it or the IB platform will irritate you even more after seeing Speedtrader.
Darren
darrren
believe it or not - IB actually rent out their trading interface to other companies to use as their trading platform for their own systems
the IB platform is kinda crap - but IB never really wanted to encourage high volume trading - hence they offer a fixed and low commision regardless of volume
and IB offer api access to anyone who wants to write their own front end - which is why a bunch of people have written front ends which they now supply and IB is quite happy about that
for anyone who wants to go real high volume - IB also offers another way of hooking into them using FIX which offers much faster trading access - and is an industry standard language for trading
believe it or not - IB actually rent out their trading interface to other companies to use as their trading platform for their own systems
the IB platform is kinda crap - but IB never really wanted to encourage high volume trading - hence they offer a fixed and low commision regardless of volume
and IB offer api access to anyone who wants to write their own front end - which is why a bunch of people have written front ends which they now supply and IB is quite happy about that
for anyone who wants to go real high volume - IB also offers another way of hooking into them using FIX which offers much faster trading access - and is an industry standard language for trading
Stevet
Thanks for that info.
Juan
Go to www.Speedtrader .com for all the details and access to their demo software - no credit card needed.
You can get their comm rate down to $9.95 by signing up via one of their agents.
The reasons I went with IB were security of a well established firm and low comm rates.
If Speedtrader were a big firm and their rates were like IB, I would have gone with Speedtrader. I found their platform a dream. Within a minute of entering you can work everything out and feel confident to trade immediately. NOT SO with IB.
Darren
Thanks for that info.
Juan
Go to www.Speedtrader .com for all the details and access to their demo software - no credit card needed.
You can get their comm rate down to $9.95 by signing up via one of their agents.
The reasons I went with IB were security of a well established firm and low comm rates.
If Speedtrader were a big firm and their rates were like IB, I would have gone with Speedtrader. I found their platform a dream. Within a minute of entering you can work everything out and feel confident to trade immediately. NOT SO with IB.
Darren
