What the TD Ameritrade-Scottrade Deal Means for Customers
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Anyone else in the US suffering because of their new margin requirements? They're live right now. I tried to short my total cash balance and it said I did not have enough to cover my margin requirements. I understand they're trying to help people not lose all their money, but they really put a damper on my party.
Yes, my algos have been impacted by this change too. I called up IB and talked to them, asking if this was a temporary measure. They stated that it is not temporary, they have no plans on changing these new margin requirements. It would be great if Quantopian would support some other brokers, like etrade, tdameritrade, schwab etc.
Almost every VIX algo needs spot, 1 month and 2 month vix data, but they still do not support this. So we end up having to resort to using quandl or some other third party service, which by definition has to be stale data i. Having said that, when you shut down your platform for a whole day, I guess you really have MUCH bigger problems to deal with first. This is frustrating - but I can manually trade my strategy - I would just rather have quantopian do it for me.
I do not know what the margin requirements are for the other platforms, but I have heard that their margin interest rates are much worse than IB i. Although it is tempting to compare the end resultit is actually a poor comparison metric. The reason is that the interest you pay for shorting is not factored into the Quantopian results. The advantage is that you have defined risk, whereas shorting is theoretically undefined risk. Yes, and IB has stated this is the new norm.
When you say "untradeable" do you mean your algo has become unprofitable with this new policy? To make the best of the situation, couldn't you simultaneously short VXX 0. Depending on how the margin works - you would be buying the XIV on "margin" or borrowed cash, no? They are so easy to trade profitably, it's almost to good to be true and I am honestly wondering how long the party will last.
With IB making this move, I wonder if this may spur other brokerages. Which brokerages have more lenient UVXY requirements? I basically moved away from IB. When my broker decides to police the markets, I know it's time to move even though I had been with them for many, many years. I have started using Ally. Depending on your account size and strategy, their fees may be lower too I suspect for smaller accounts their fees will be higher.
And another HUGE bonus It is so simple it puts every other broker API to shame. But td ameritrade options requirements to be a police don't have paper accounts to test their API, which is Anyone have any luck on Tradestation? I signed up with td ameritrade options requirements to be a police Ally Invest account. Mohammed, What specifically did IB forbid you to trade? I understand the higher margin requirements on shorting VXX.
Frankly, they need to cover the risk of VXX tripling or quadrupling in value. Because VXX suffers from contango degradation greater than the time loss you always normally suffer from holding a put, with VIX you are not suffering from net time erosion if volatility remains steady.
I know there is some kind of clause in the XIV whereby the value could go to zero under extreme circumstances, but I confess I have not YET dug deeply into what those circumstances would be. I will do that before taking any large positions in XIV. Are they doing so? IB forbid me from increasing margin on ANY volatility related securities. I was also not able to buy XIV. I was not able to do anything at all related to shorting volatility. They basically locked my account, because they claimed that the risk of a volatility spike was high.
But they still locked my account from shorting volatility in any way. I have an new policy now Good luck with the new broker. I fear that IB is the canary in the gold mine, and all the others will follow suit shortly.
Rare events yes, but I would be shocked if we don't have at least one over the next 8 years. See the link here for explanation: Frankly, I have not studied this in depth, and the analysis may be flawed, but I would rather err on the side of caution.
I will continue to trade the XIV but with the assumption that in a big market move it will go to zero and be "closed" at that point by the ETF. This is a fact. I'm not saying you should buy XIV. But IB told me that I cannot buy it. That is because THEY deemed the risk as too high. The fact that trading occurs at all is because different people have different assessments of risk and value. Wherever you sign up with a broker they are required to give you a survey asking you what your risk tolerance is.
Perhaps if you update your survey they will be less restrictive with you. Could possibly be the issue. Otherwise that's super strange. If you have no need for shorting, I recommend Robinhood as it is free and there appears to be no limitation on trading XIV unless you want to trade it on margin, but any medium to high volatility security will have restrictive margin maintenance requirements anywhere you go.
PM me if you want a referral link, and they'll give us some free stock. Viridian, I don't think that is the issue. Easiest way is to use options. Do a synthetic short i. Sorry, something went wrong. Try again or contact us by sending feedback. The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute td ameritrade options requirements to be a police offer to provide investment advisory services by Quantopian.
In addition, the material td ameritrade options requirements to be a police no opinion with respect to the suitability of any security or specific investment. Td ameritrade options requirements to be a police information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act ofas amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein.
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Long XIV came in That doesn't sound surprising - I have seen similar differences with my own backtesting. Because the margin requirement zaps your buying td ameritrade options requirements to be a police. Do i need to be an ALLY customer to have access to their brokerage account?
Are you saying they have directed you not to go long XIV? Serge, the point is td ameritrade options requirements to be a police that volatility trading is not risky - everyone knows it is. BTW most people that trade volatility products have their trades hedged, and I do too.
Also, I don't consider Robinhood a proper broker, they would not be suitable for my trading. Please sign in or join Quantopian to post a reply.
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