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6:1 margin for overnight stock positions at InteractiveBrokers
- Thread starter maos
- Start date
Quote from yip1997:
Suppose initially I have $100K, and my account is enabled for pm.
I then buy $200K value of diversified stocks, and short sell $200K value of another set of diversified stocks.
How will ib charge me interest?
why would you think they'd charge you interest any differently than if you used Reg T margin.
0% interest fee if you close position out @ the EOD and regular interest rates for overnight positions
with portfolio margin... is there a restriction @ 3:50 like there is with reg T where you have to be @ 2:1
Thanks
Thanks
Quote from ProgrammerGuy:
why would you think they'd charge you interest any differently than if you used Reg T margin.
0% interest fee if you close position out @ the EOD and regular interest rates for overnight positions
Why would you think they are same as Reg-T? I will expect to pay a lower interest with pm when compared to reg-T.
Okay,
let me get this right...
I am hearing a TON OF DIFFERENT THINGS.
I hear that if you account is known to be a day trading account you will not really benefit from portfolio margin.
Tell me if I could benefit.
During the middle of the day one of my trading models makes me dollar neutral half short / half long. Because of that I can throw a lot of money using this model. The fact that I wasn't aware of PM and only new of 4:1, I went prop, however if I could get an average of 6:1, I could barely sling retail which i'd rather do. Also I have other models that trade during open, close and mid day, but I'm never too deep in the market.
let me get this right...
I am hearing a TON OF DIFFERENT THINGS.
I hear that if you account is known to be a day trading account you will not really benefit from portfolio margin.
Tell me if I could benefit.
During the middle of the day one of my trading models makes me dollar neutral half short / half long. Because of that I can throw a lot of money using this model. The fact that I wasn't aware of PM and only new of 4:1, I went prop, however if I could get an average of 6:1, I could barely sling retail which i'd rather do. Also I have other models that trade during open, close and mid day, but I'm never too deep in the market.
I do not think that we calculate interest rate differently for PM accounts. Once again, it is not my area and I am not 100% sure.
There is no notion of intraday and overnight margin for PM accounts. Your margin does not depend from time. A most important time for a margin change is between 2 and 3 AM EST when we load new risk parameters for the next trading day.
There is no notion of intraday and overnight margin for PM accounts. Your margin does not depend from time. A most important time for a margin change is between 2 and 3 AM EST when we load new risk parameters for the next trading day.
Anybody could benefit from PM account. The only problem is you have to understand that it works very differently from regT. One could be discouraged quickly by a fact that the first position on the account will require something like 30% margin. Another will wonder about a sharp overnight margin change after highly volatile yesterday market. Third will require an answer why he is closing part of his positions and margin increases. Sometimes, it is possible for a long stock position. Most definitely, PM is not for everybody.
I just downloaded the trail version and I took 24 stocks, half long half short, dollar neutral and found out that the leverage was 1:5.5, however if I took the 24 stocks and went all long I was able to get 1:6.1
weird...???
I thought that the goal of PM was to award those who are hedged
weird...???
I thought that the goal of PM was to award those who are hedged
Why does no one seem to know anything about PM?
It is simple for stocks. First it is not "approximately" or "about" anything. It requires margin to cover a 15% move, so 100 divided by 15 gives you 6.666_ to 1 leverage. Going short and long has nothing do with it and is not considered hedged unless you are talking about items that have offsets by being in the product groups defined by the OCC.
It is more complicated for options so I won't go into that. The problem you guys are having is that you are confusing the simple rules of PM and the relatively complicated margin requirements of one specific retail firm IB which are so much different than the requirements of PM that there is no point is talking about the two together. IB does not offer PM margin, they offer their own convoluted margin requirements where it is up to you to figure out their rules.
It is simple for stocks. First it is not "approximately" or "about" anything. It requires margin to cover a 15% move, so 100 divided by 15 gives you 6.666_ to 1 leverage. Going short and long has nothing do with it and is not considered hedged unless you are talking about items that have offsets by being in the product groups defined by the OCC.
It is more complicated for options so I won't go into that. The problem you guys are having is that you are confusing the simple rules of PM and the relatively complicated margin requirements of one specific retail firm IB which are so much different than the requirements of PM that there is no point is talking about the two together. IB does not offer PM margin, they offer their own convoluted margin requirements where it is up to you to figure out their rules.