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by sooheon 1776 days ago
Caveat emptor: IBKR's TOS makes it clear they reserve the right to liquidate your positions at any time for basically any reason, including margin requirement changes.
2 comments

Every brokerage has those terms. Even Credit Suisse in this article had this right over Archegos's positions - they just were too scared to exercise it.
Of course. IBKR has lower rates and approves more easily, therefore they will be much more trigger happy. CS timidly emailed about potentially discussing margin rate adjustments, IBKR can liquidate your positions for instantaneous margin violations without warning or a margin call. The assumption is your leveraged position is hedged well enough to protect against untimely margin calls, and the cost of hedging is roughly equivalent to the nominal margin rate savings they offer.
Of course they have to put that in TOS, this whole discussion is about how CS didn't enforce changes in margin on time, and they ended up bag holding.

What do you want them to do? bag hold a loosing or risky trade and pass the effects to other clients?