On March 18, 2012 trading in shares of Facebook (NASDAQ: FB) in the secondary market is expected to begin. The IPO price range is projected at $34 - $38 with the size of the offering listed at 421.2 million shares. Relevant information relating to IB's handling of this security is as follows:
- Orders received prior to the start of trading in the secondary market IB will be held and submitted to the exchange on March 18, 2012.
- Acceptable order types prior to the start of trading include Limit, Market on Open and Market. Given the uncertainty associated with opening prices of IPO shares, in general, account holders are strongly encouraged to consider the use of Limit orders.
- Acceptable time in force conditions for orders placed prior to the start of trading include Good-Till-Date and Good-Till-Canceled. Please note that a Day Order, by definition, expires if not executed on the day on which it has been entered. Accordingly, a day order entered before the close on the day prior to the start of trading will not be submitted to the exchange when trading begins.
- To ensure that an order has been properly transmitted and is working as intended, it is suggested that you closely monitor your working order(s) on the days prior to, as well as the day of, initial trading in the secondary market (Friday, May 18, 2012). If you have any question as to whether the order is working, please contact Customer Service and from the main menu select option 1 and then 2
- The initial and maintenance margin requirement for FB will be set at 50%. Please note that margin requirements are subject to change and IB reserves the right to make such changes without advance notice.
- For information from the NYSE/ARCA exchange regarding FB, click here
Interactive Brokers supports cash settled standard warrants listed for trading on the SWX Swiss exchange. This includes a number of share warrants and all index, commodity and currency warrants.
Share Warrants with physical delivery are not supported at this time.
Account holders receiving the following message 'Your account is restricted from placing orders at this time' are not allowed to place any opening or closing orders without prior assistance from the IB Trade Desk. Questions regarding this restriction should be addressed to the Trade Desk via Customer Service (see contact information link below).
Account holders receiving the following message 'Your account has been restricted to placing closing orders only' are limited to placing orders which serve to close or reduce existing positions (i.e., sell orders which close out or reduce existing long positions or buy orders which which close out or reduce existing short positions). The basis for this restriction varies and often involves pending documentation, compliance and/or risk issues. Regardless of its basis, the restriction affords account holders the ability to manage and reduce the market exposure of their positions while in effect. Questions regarding this restriction should be addressed to Customer Service (see contact information link below).
Order types which provide privacy by either hiding the entire order quantity (i.e., Hidden Orders) or allowing the display of only a specified portion of the submitted order quantity (i.e., Iceberg/Reserves) are not supported for all product types and venues.
Examples of venues for which Hidden and Iceberg/Reserve stock orders are not supported are Pink Sheet and OTCBB. Hidden or Iceberg/Reserve orders submitted to these venues will be rejected and will generate the following message: "Order quantity must be fully displayed for this instrument". Orders receiving this rejection message will require the removal of any hidden or display size attribute prior to resubmission.
Additional information regarding product types and venues for which these order types are supported is available through the links below:
Clients who are unable to trade more than one futures contract per order should first check their order presets to ensure that they have not established an order size limit in the precautionary settings. If this is not the case, then the restriction has likely been imposed by IB due to the client's failure to accept the Arbitration Agreement which automatically imposes a trading limit of one contract per order. Clients decline to accept the agreement when presented through the application process but who subsequently wish to accept need to contact Customer Service to obtain and execute a physical copy of the agreement.
U.S. residents are unable to trade options on futures for most foreign indicies, such as the DAX.
IB imposes certain limits on the number of active orders an account is able to have outstanding at any one time.
If the total number of active orders in any one account exceeds 10,000, any new orders submitted in excess of 10,000 will be rejected.
In addition to the limit on total orders in an account, there is also a limitation on stacked orders for any one contract, on the same side of the market (either buy or sell). If the total number of stacked orders exceeds 15, new orders are rejected. For example, if you had placed 15 separate buy orders for IBM, your attempt to place a 16th buy order for IBM would be rejected.
When attempting to create sub accounts for themselves, many advisors cannot complete the process due to the client email address matching that of the advisor.
As a measure of client protection, IB will not allow the e-mail address of a client to match that of the Advisor.
What you can do, is create a new e-mail address for yourself, using a free service such as Yahoo!.
This will allow you to create the new sub account.
Portfolio Margining accounts reporting net liquidating equity below USD 100,000 are limited to entering trades which serve solely to reduce the margin requirement until such time as either: 1) the equity increases to above 100,000 or 2) the account holder requests a downgrade to Reg T style margining through Account Management (select the Trading Access and then trading Configuration menu options).
If a Portfolio Margining eligible account reporting net liquidating equity below USD 100,000 enters an order which, if executed, would serve to increase the margin requirement, the following TWS message will be displayed: "Your order is not accepted, margin requirement increase not allowed. Equity with loan value is less than 100,000.00 USD."
Please note that requests to downgrade to reg T will become effective the following business day if submitted prior to 4:00 ET. Also note that as the Reg T margining methodology generally affords less leverage than does Portfolio Margining, requesting a downgrade may lead to the automatic liquidation of positions in your account in order to comply with Reg T. You will receive a warning message if that is the case at the time you request the downgrade.