IBKR removes limits on trading in securities
Due to abnormal volatility, on January 28, 2021, IBKR announced the imposition of restrictions on trading in securities. Then the company said that this is the only solution to the problem. When the situation returns to normal, Interactive Brokers Group promised to remove the limits.
Recall, in particular, IBKR announced the closure of trading in shares of GameStop, Nokia, Koss Corporation, Bed Bath & Beyond, etc. Deals with these securities could only be closed. In addition, the broker closed options trading for Koss Corporation, BlackBerry, AMC Entertainment, Express. Since 28 January, short positions have required a margin of 300%, and long ones - 100%.
Today the following information appeared on the official website of IBKR: "Temporary restrictions on increasing your positions have been removed." Traders can trade as usual.
Note that WallStreetBets from the online platform Reddit is suspected of abnormal volatility of some securities. Like-minded people organized a promotion and began to massively buy up shares of some companies (for example, GameStop) in order to teach a lesson to large investment funds. In just a few weeks, the value of securities increased significantly, and some funds filed for bankruptcy due to large losses.
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