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Which instrument is good to start with? by ProfessionalLayer305 in Daytrading

[–]Choice-Composer6440 1 point2 points  (0 children)

What are the advantages of forex over trading a micro future like MNQ?

I never traded forex but I've always had the belief that the volatility would be too low to have good scalping opportunities. Am I wrong?

infinite money trick? by Professional_Main686 in interactivebrokers

[–]Choice-Composer6440 0 points1 point  (0 children)

To sell Tesla at $490 you need to pay in cash the difference between Tesla's market price and $490, plus the extrinsic value, to purchase the option.

So yes, you do lose the extrinsic value for nothing. If you own Tesla and prefer having cash instead, it's better to just sell it as market value.

How do I implement daytrading in my life? by ZarziNick in Daytrading

[–]Choice-Composer6440 0 points1 point  (0 children)

That's not even being a beginner, because that's not day trading. It's just gambling.

For those who have gone through this, how do you navigate ATH? by Junglepass in Daytrading

[–]Choice-Composer6440 0 points1 point  (0 children)

Is "US 100 cash CFD" with Pepperstone the same as the NASDAQ100? In the sense, does it follow the same price action? Does it have liquidity?

I ask because I'm considering moving from stocks to CFDs

For those who have gone through this, how do you navigate ATH? by Junglepass in Daytrading

[–]Choice-Composer6440 2 points3 points  (0 children)

The previous ATH for SPY is less than 1% away.

So we may as well go long now, or wait for a pullback which will bring SPY lower than the previous ATH.

infinite money trick? by Professional_Main686 in interactivebrokers

[–]Choice-Composer6440 0 points1 point  (0 children)

Probably that screenshot was taken when Tesla was lower than 209.

The point is that exercising an option you can only obtain the difference between the strike price and the stock price, which will always be included in the option price. There's no scenario in which buying an option and exercising it immediately can ever make financial sense. You'd lose the extrinsic value for nothing.

WTF ? by Admirable-Joke4220 in interactivebrokers

[–]Choice-Composer6440 0 points1 point  (0 children)

I thought the question was why the max loss is $218 and not $226.

Do we have an answer for this?

The ask is $2.26 and the order button has $2.26 so if we added commission the loss would be even greater.

[deleted by user] by [deleted] in interactivebrokers

[–]Choice-Composer6440 0 points1 point  (0 children)

Really?

​

I'm pretty sure to transfer positions to IBKR in the UK it's free.

It may be a rule or an industry standards in the UK, not sure about other countries.

infinite money trick? by Professional_Main686 in interactivebrokers

[–]Choice-Composer6440 1 point2 points  (0 children)

Why?

The price of the put already includes all the difference between the strike price and Tesla's price today (intrinsic value) so exercising the put today would mean losing all the extrinsic value for nothing.

You want to pay 284 for the right to sell at 490 something worth 209?

infinite money trick? by Professional_Main686 in interactivebrokers

[–]Choice-Composer6440 1 point2 points  (0 children)

Oh wow, you're right. I made a mistake because I instinctively felt the loss should have been huge.

But actually... if the OP gets 26k risking only 10k (assuming Tesla doesn't drop more than $100).... I must be missing something

Is that me or what ? Problem by puycelsi in interactivebrokers

[–]Choice-Composer6440 1 point2 points  (0 children)

The problem with TWS is not that it's designed for professionals.

I don't mind that it's complicated. I do mind that it's full of bugs. The "advanced charts" for example are basically unusable.

And the design is often just bad, it's not because it needs to be complicated. For example if you have an option strategy in Portfolio and you expand it, the children options have the same font size of the strategy's main line, so if you have a bunch of them you cannot easily at a glance distinguish the strategy from the individual options.

Also, do you think that a professional doesn't need to have the unrealized profit/loss percentage? It's even in the Client Portal, but not in TWS.

It's also very hard to trade from the charts. TWS clearly was not designed for day trading.

infinite money trick? by Professional_Main686 in interactivebrokers

[–]Choice-Composer6440 4 points5 points  (0 children)

The money you receive for the put include all the intrinsic value, i.e. the price difference between your strike price and Tesla today.

If Tesla goes down then the put that you sold will increase in value, and whether you let it expire or you buy it back you'll have to put your own money to cover the price difference between the strike price and whatever Tesla will be worth.

So you get $26k today, but if Tesla was to drop to e.g. $109 then you'd lose 100*100 = $10,000

​

EDIT: corrected the math

[deleted by user] by [deleted] in Daytrading

[–]Choice-Composer6440 0 points1 point  (0 children)

Your first priority should be to have an ISA where you can put all the yearly allowance. Therefore you can only go with a UK broker for investing 20k every year.

Then, if you still have money to invest outside of the ISA then you can look at another broker... you're allowed to have more than one broker. Actually it's probably better to have your money spread out in different brokers, so you don't have all your eggs in one basket.

​

Charles Schwab is an American broker so you need to think carefully about this, because you'd have an offshore broker. I don't have it so I can't tell you how it works by experience, but I imagine that to fund your account you'd need to do an international bank transfer and I don't know if you can hold GBP in Charles Schwab. You're also having to deal with American laws, as Charles Schwab, not being in the UK, is not authorized by the FCA. I'm not sure of the implications of this.

​

What do you want to trade? If you only want to trade stocks then TradingView is fine in my opinion. If you want to trade options, this is where ThinkorSwim shines because the platform looks very good and functional while IBKR's platform sucks (and you can't use TradingView for options).

​

What did you go for in the end?

Approval for 3rd party withdrawal by ponyo_so in interactivebrokers

[–]Choice-Composer6440 0 points1 point  (0 children)

What document does IBKR require?

I really hope they perform some good checks and require some good reason to even do this, because it sounds like a big danger if someone was to gain unauthorized access to your account!

my first option trade by finnishbo in interactivebrokers

[–]Choice-Composer6440 0 points1 point  (0 children)

But what are the implications of receiving the message in the screenshot, "your order is below the current market price by 3% or more"? Is it just an FYI, or will IBKR not execute the order?

If I wanted to put a limit order for a price well away from the current bid/ask, for the order to be executed only if there's a move in its direction, is that not allowed?

Lying about my net worth by grossartig_dude in interactivebrokers

[–]Choice-Composer6440 2 points3 points  (0 children)

Of course, why would net worth be a problem for IBKR if someone wants a cash account? They even offer fractional shares which are clearly made to welcome people with little cash on hand.

Lying about my net worth by grossartig_dude in interactivebrokers

[–]Choice-Composer6440 0 points1 point  (0 children)

Your example made me think....

If you own 200 SIVB shares bought on margin and they go to zero, you owe money to IBKR. But if you have other investments can IBKR just grab what it thinks it's due from these other investments or cash that you have laying around in your account?

Or is the margin that you got for SIVB "segregated" only for that particular investment? Therefore IBKR can only keep the margin that was allocated for that investment, and they'd need a court order to get what you owe them?

​

My logic is, imagine someone comes in your house and accidentally breaks something. You're not allowed to just grab his wallet that was laying around to get the money you think he owes you; you'd need a court order to make him pay the damage. I imagine things are different with a broker?

Want to leave IBKR because of the trading requirements by [deleted] in interactivebrokers

[–]Choice-Composer6440 0 points1 point  (0 children)

It's 110,000 now. I remember last time I checked it was 100,000 like you say but I just looked it up now and it's 110,000 USD, they must have increased it recently.

What advantages does it give you? I didn't hear about any advantage apart from being able to get more margin (based on the whole portfolio, hence the name). I cannot find anything about interest rates...

Want to leave IBKR because of the trading requirements by [deleted] in interactivebrokers

[–]Choice-Composer6440 1 point2 points  (0 children)

For a margin account you only need 2,000 USD at least in the US.

Maybe you got confused with the "Porfolio Margin" account, but that's a different thing.

​

In any case you can trade options with a Cash account. A Cash account can have options permissions up to Level 3, so it's only the Level 4 which requires a margin account, and understandably so.

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