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Right, but why at IB only cash has necessarily to be a collateral? Why the long marginable securities do not make the cut? That's what makes IB different from other brokers.

IB offers PM good enough in terms of the leverage based on the portfolio risk. But in terms of the margin financing it's far off the mark.

You are right, but if qqqq moves down and qid moves up to let's say 800k worth of value you will have to pay interest on 100k. Cash account = 100k + 600k ( short proceeds ) - 800k ( short position adjustment ) = -100k. This is just an example of how margin interest is calculated. As far...

It will charge you on 100k margin. Cash Account = 100k ( initial cash account ) - 200k ( long stocks ) + 200k ( short proceeds ) - 200k ( short positions ) = -100K

So you are saying only short stocks are required to be marked to market? What about other long stocks that might have settled with $60,000 profit and erased all those losses? Does IB adjust up the cash balance by the long stocks market value?

The best assessment of the leverage you can get by trying the demo PM account which you already did. My assessment is that it's about 6x leverage. And remember you need 100k of capital to qualify.

The interest is charged only if the cash account balance is negative. Other brokers don't settle stocks every day as cash. Stocks are not marked to market. The only value that changes every day is the total net liquidation value of all long and short positions. If you sell stock short its...

Any way the other brokers as far as I know don't adjust down the cash balance by the short stock positions. So they never charge the interest no matter whether the stock is up or down from it's entry point.

http://individuals.interactivebrokers.com/en/accounts/fees/interestMethods.php?ib_entity=llc#calculations IB adjusts the cash balance by substracting short stock positions. So if your account cash balance was 0 ( or small enough ) before you sold the stocks short you are subject to the debit...

You will pay overnight interest if you have negative cash balance or you have short stocks. The latter to my best knowledge is only true at IB. Neither ToS nor OptionsXpress charge for the short positions.

What are the other tax qualifications that might be suited for the trading style described in the original post? If he is not qualified for a trader tax status what is he then in the eyes of IRS?

e-trade

I don't have any trouble to connect to their desktop platform.

If you are not an active day trader I would recommend you thinkorswim.

Yes, USD downtrend is over. The record number of Europeans are flocking into US for Christmas shopping. This is straw in the wind that strengthening of the dollar is around the corner.

Open interest is the number of the outstanding contracts. One can sign a new contract with another person ( open interest increases ), sell it to another person ( change of ownership, open interest remains unchanged ), or make the delivery ( open interest decreases ) .

Why didn't you select the option #1 of their customer service?

If you were short put and it was assigned to you the long stock appears in your account. If you were short call then you are short stock after assignment.

cboe.com

What's the difference between CFDs and futures contracts?