We are seeing unprecedented volatility in GME, AMC, BB, EXPR, KOSS and a small number of other U.S. securities that has forced Interactive Brokers1 to reduce the leverage previously offered to these securities and, in certain instances, limit trading to risk-reducing transactions.
January 29, 2021
On January 29, 2021, Interactive Brokers placed the following restrictions:
- Reduction of the leverage previously offered to these securities and, in certain instances, limit trading to risk reducing transactions.
- Placement of options on certain of these stocks in closing only, but not restrictions on trading shares in the mentioned companies.
February 1, 2021
On Monday, February 1, 2021, all trading restrictions were lifted on Options in AMC, BB, EXPR GME, KOSS and other options that experienced recent market volatility.
However, the options and their underlying stocks are subject to increased margin requirements2. These margin requirements change based on market conditions and can be viewed in your trading platform prior to submitting an order.
As always, accounts that are unable to meet the new margin requirements will be subject to automated liquidations3 in order to bring the account into margin compliance. Accounts subject to risk-based margin will have their scanning ranges increased in a similar manner.
1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.
Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.
Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.
For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.
2 Information on Interactive Broker’s margin rules can be reviewed in this article. To monitor your Euro Pacific Trader available margin balance, please read this guide.
3 Interactive Brokers (IB) will liquidate your positions without prior notice until your account complies with margin requirements. IB automatic liquidation of under-margined accounts is designed to protect customers and to protect IB in times of market turmoil.