6:1 margin for overnight stock positions at InteractiveBrokers

Do you want IB to allow portfolio margin for accounts <100,000$

  • Yes

    Votes: 77 58.8%

  • No

    Votes: 54 41.2%
  • Total voters
    131
Quote from maos:

If i got it right...

the only exemption mentioned on the page is related to exemption from RegT day trading rules for those who are approved for portfolio margin
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correct- customer account with less than $5 Million - are suppose to have some of their positions (spec) subject to day trading rules!!!

IB got an exemption because of their real time margining - so it isn't $5 million it is only $100K for those who speculate

Yet we got guys on this board who think $100 K is too high and these are the same guys who simply want move levarage for their unhedged positions....
 
Misinformation flying around like crazy.
$100k is neither arbitrary nor made up by IB. Per NYSE Regulation "We expect all other accounts to maintain no less than $150,000 of equity unless the firm has a real-time intraday monitoring system that captures all trades, activity, and price movements throughout the day, in which case we are comfortable with a $100,000 minimum."

With regard to options trading: the TIMS system used by the OCC to calculate the Portfolio Margin requirements is complex and rather antiquated. Depending on your positions, your requirements can change quite significantly from one day to another. IMO only sophisticated investors with their own software that mimics TIMS should use Portfolio Margin with options.
 
Quote from mskl:

yes - it is arbitrary - however one should be grateful that it is only $100K. Think about it.

If you set the amount at say $50K and allow the increased leverage (which can be much larger than what you describe) and the account falls below $25K and reverts to a Reg-T account - it becomes a nightmare.
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mskl,

I think you got it wrong.

Current rules state that as long as you are above the 100k mark you are eligible for portfolio margin (and increased leverage) Once your account fall below that mark it is automatically switched to RegT rules and subject to liquidation of positions if leverage at the time is greater than cca. 2x.

So if IB were to lower the account limit for portfolio margin to let's say 50k, once your Net Liquidation falls to 49,999$ your account becomes a Reg-T account.

So even if account limit is lowered you would still need more money in the account to be able to absorb losses without your account reverting to RegT ( how much more depends on the expected drawdown)
 
Quote from opt789:

Misinformation flying around like crazy.
$100k is neither arbitrary nor made up by IB. Per NYSE Regulation "We expect all other accounts to maintain no less than $150,000 of equity unless the firm has a real-time intraday monitoring system that captures all trades, activity, and price movements throughout the day, in which case we are comfortable with a $100,000 minimum."

B]
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I wasn't aware that this was added - thanks.
 
Quote from stock777:

stupid question. would you be paying margin interest on this 600k overnight. could get expensive
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You are not supposed to be 600% invested all the time. The margin is there only when you need it...and those time for me are rare but very profitable because I trade a version of limit down system

So interest on 600k leverage is insignificant...at least for me.
 
http://rtfmtrading.com/

These people are great with customer support and you only need 5k to fund. You get 50k to trade with.

I asked them to raise intraday margin, they said they will give me 100k within a month providing they see I am a conservative trader.


michele
 
Does anyone know if this rule (6x margin for accounts greater than $100,000) is valid for intra-day trading at IB? TIA
 
Portfolio Margin is valid any time including intra-day. 6x margin "rule" not exists though. It is a way too simplistic description of PM.
 
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