Futures and options trading in india books dubai43 comments
I have one problem with Interactive Brokers Since I am a student and does not have a full time job, I cannot open Margin Account. So, basically, I can only do long positions on US equities This is all well and fine, since I am currently only interested in doing long strategies to minimize the risks The main problem with Interactive Brokers is that it takes up to three days to settle the cash after you sells the stock.
Only then, you can use that money. As you can imagine, that is a great limitation Basically, you have to come up with strategies that is not too frequent if you want to use a significant part of your cash I tried to talk about it with IB customer service and did not get anywhere I understand it is not a problem of Quantopian But, I was wondering if Quantopian is in a better position to make a deal with Interactive Brokers to either speed up transaction or be able to use IB money's of equal amount while waiting to finish the transaction So you want Quantopian to give you credit?
If you want to be placing trades that frequently and not holding enough cash in reserve to get you through the settlement period, then you really do need a margin account, regardless of which broker you're using and whether you're trading algorithmically or manually. 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 an offer to provide investment advisory services by Quantopian.
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The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. If the funds are not yet available, the order will get rejected by IB and will appear as such in the live trading dashboard. You can also see the high-level rejection message passed along from IB. Interactive Brokers requires 10K to open an account, not to many people have 10 grand sitting around to trade.
It is true that Quantopian should work with other brokers too. That would be terrific. IB does require 10K to open account. IB used to have an option to open an account with a lot less than 10K for someone younger than I am not sure if they still do that.
My primary objective of this post is to raise awareness about the limitation of the cash account in IB and consider that limitation while coding their strategies here. By the way, could there be a problem with IB if the order is rejected too many times because the transaction is not settled yet and there is not enough cash.
When doing live trading on Quantiopian with IB, does the cash balance in the portfolio object reflect IB's actual cash availability i. It just takes that long to transfer the funds. Basically, if you sell a stock on day 1, you will get that money for the sale on day 4.
However, if you buy a stock on day 2, you will need the money to buy that stock on day 5. So, you get the money on day 4 and use it on day 5. All transactions are just delayed for 3 days unless it's faster which won't happen unless you have the funds there to begin with. This is how day trading works - see this forum question Look at jono's response and fzbkk's third post. So, now I know for a fact that Interactive Brokers reports the pre-settlement balance, rather than the post-settlement balance.
As a result, Quantopian has attempted to place multiple orders today which could not be filled because I did not have sufficient settled cash.
Is there any way that Quantopian could be configured to get the settled cash balance rather than IB's "total cash" value? I can't see any way to reasonably get this data from within my algorithm, and having this disparity actually causes problems for my algorithm and could cause problems with IB as well , which is rather unfortunate.
I would be surprised if the same does not apply to your situation. You may need to ask a different rep. I'm actually a little surprised by this as even though I am a relatively new investor, I know my e-trade account allows me to use unsettled funds immediately as long as I have enough in my account not including the amount made by the sale to cover the amount I'm trying to buy.
The only stipulation is I can't sell those newly purchased stocks until the funds have settled "officially. Having cash holdings makes sense, but IB is sort of a sandboxed account specifically for algorithmic stock trading and not necessarily for "safe" investing. I keep my cash holdings in other accounts that are intended for cash holdings. I certainly wouldn't put my entire life savings into IB to be managed by Quantopian, nor do I even keep a significant portion of my stock there.
This is an experiment, and I'm never putting up more money than I'm willing to lose. Also, even maintaining a cash buffer doesn't help my particular algorithm; on one day it might decide to dump all holdings, and then repurchase an entirely different set of holdings. And it might do this on a daily basis. I've had this happen a few times as well, the message from IB is that you will either need to deposit more money, or hedge your positions. IB doesn't do margin calls, they just reject orders; this is good because you won't be in violation of any regulations, but it's bad if only one leg of a multi-leg strategy executes and leaves you over-exposed.
Yeah, I'm planning on adding a margin account at some point. It'd still be nice if the portfolio object reported available cash separately from expected cash value, though.
Sorry, something went wrong. Try again or contact us by sending feedback. Hi Everyone, I have one problem with Interactive Brokers Any suggestion would be appreciated! I am pretty sure that this problem applies to all brokerages, not just to Interactive Brokers.
Hi, It is true that Quantopian should work with other brokers too. Cash holdings are a safety net against bad trades, and not a trading strategy on their own. Please sign in or join Quantopian to post a reply.
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