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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Allan C. who wrote (12269)3/10/2001 2:33:14 PM
From: TraderAlan  Read Replies (2) | Respond to of 18137
 
Allan,

I would think a company like that has major risk since they have so many smaller traders trying out scalping strategies (the same folks who will be getting nasty memos). I believe though they grew on the interest of futures and options types.

Alan



To: Allan C. who wrote (12269)3/10/2001 5:40:48 PM
From: TFF  Read Replies (2) | Respond to of 18137
 
Read the fine print..they are trading against retail order flow information. Very similar to what Knight does (except IB gets a cent a share instead of paying for order flow). IB is one of the largest program trading outfits out there.

I'd love to get a piece of that action:)



To: Allan C. who wrote (12269)3/10/2001 5:52:13 PM
From: LPS5  Read Replies (4) | Respond to of 18137
 
why does SIPC insure 500k for securities and only 100k for cash? seems odd

The SIPC is the Securities Investors Protection Corporation. I believe that the basic reason for the $100K cap on cash claims with SIPC is a matter of quasi-territoriality with the FDIC; also, it server to encourage investors to use banks for their cash deposits, broker-dealers for trading/investments, and not to wargame the two organizations against one another.

but how long would it take to get your money back?

I have been in the business during several large broker-dealer and clearing firm failures. The two that come to mind right off the bat both occured in the mid-nineties.

In both cases, customers who had funds on deposit with them have still not had dollar one of their lost deposits returned.

LPS5



To: Allan C. who wrote (12269)3/10/2001 9:02:23 PM
From: booters  Respond to of 18137
 
I have always been a bit worried about the solvency of IB

I think IB is a much larger company than many realize. But aside from that it is probably one of the safer firms out there because of their margin rules, they in essence do not have any. If you dip below the required margin level they simply close the trade. There is never a margin call or a potential for a deficit in the account.

boots


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