Tuesday, June 26, 2007

Question to Readers


I know there are a lot of traders that read this blog that are futures traders and I have a couple of simple questions for you.

1.Who is your broker? (if you don't wish to say, just tell me if it is a broker other than IB so I have an idea to base my results on)
2.What time does your broker auto-liquidate your position if you are overleveraged?
(for example IB liquidates outstanding futures positions at 3:50pm EST give or take a minute)

What is the point of these questions you ask,,,,I'm curious if this short time period of trading has an influence on price and how many brokers are involved in auto-liquadation of positions and at what times these brokers execute. I know there are many retail brokers that let you hold your overleveraged futures position until 4:15pm or later, but I was hoping to hear back from some of my readers that trade with other brokerages. Knowing this information would be helpful so please all contribute.

9 comments:

Anonymous said...

1. Open e cry. I'll be switching to IB since OEC datafeed cannot be connected to QT which I love.
2. They never liquidated my position, but I'm never over-leveraged.

High Probability Trader on 6:16 PM said...

thanks for your comment

Anonymous said...

IB

TMK500 said...

Broker: sweetfutures.net (internal division of RCG - FCM)

2nd Broker: Advantage Futures -- (FCM)

I don't like giving up "vig" to introducing brokers and stick with FCM's.

Have not been auto liquidated after the close. Man, that would have to be a really bad day whereby I was mentally "checked out" or physically unable to reach the mouse ;) However, I will ask.

M.
M.

Anonymous said...

I can't help you since I also trade via IB, but I've had the same idea before. On days with major moves, there often seems to be a little extra push in the direction of the prevailing trend right around the time IB liquidates undermargined positions.

DCook on 9:30 AM said...

Great question! I trade with IB. Over the years I've noticed the same thing you're pointing out -- that is the odd 12:45 reversal. In the last week there have been several "over the top" versions. I've tried trading this, with mixed results. Yesterday I was short into the close,yet the futures were still very high relative to the indexes. So I waited and exited at 4:06...of course it continued down even further after that.

Jeff on 11:45 AM said...

IB

George said...

I trade futures with IB and RJO Futures (thru TradeStation),however, I've never over-leveraged, always go flat before 3:50pm. Some spread trades are kept over-night, but their margin requirements are much smaller anyway.

Anonymous said...

IB and when I do get liquidated it is in accordance with their policy which if I recall says liquidation will start at 4pm EST.

Bottom line on this one. I don't think you can complain as long as they stick to their policy. I've been there myself, liquidation then reversal, but I've also been liquidated and watched it keep going against me. If you kept a record for 30x this happens to you I'll bet it comes out close to 50/50.

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