I recently opened an IBKR Pro portfolio margin account and wanted to know how the cash withdrawal limits are calculated. When I go to withdraw, the "Cash Available for Withdrawal (assuming margin loan)" amount is about 1/4 of the portfolio value. Does that sound correct? I was expecting it to be higher.
Cash withdrawals on margin
- Thread starter bryantf
- Start date
I have >1M in stocks but a trivial cash balance. I presume that's sufficient?
I was expecting it to be more like $X portfolio allows $2X margin withdrawal including cash transfer to bank, rather than $0.25X. I think this is true for stock trades as I don't get an error trying to purchase $2X of a random stock, but I'm not sure since I'm not going to hit the Confirm button..
I was expecting it to be more like $X portfolio allows $2X margin withdrawal including cash transfer to bank, rather than $0.25X. I think this is true for stock trades as I don't get an error trying to purchase $2X of a random stock, but I'm not sure since I'm not going to hit the Confirm button..
You cannot look at the 0.25x multiplier because a person who has $125k in the account and no positions can withdraw $25k, while a person who has $200k and no positions can withdraw $100k. So 0.25x means nothing.
In both cases the port margin account cannot drop below $100k.
Required margin on $1M in stocks may be around $300k, so you also cannot drop below that balance.
You can see your current total margin in TWS, or right click on any of your stock positions and check its margin requirements, if considering liquidating specific position.
In both cases the port margin account cannot drop below $100k.
Required margin on $1M in stocks may be around $300k, so you also cannot drop below that balance.
You can see your current total margin in TWS, or right click on any of your stock positions and check its margin requirements, if considering liquidating specific position.
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net liq net liq net liq.
all else is a subpart, which may or may not be informative.
particulars will depend on how you trade, but you need to learn what those particulars are BEFORE you engage in deep trading, not during, not after.
Follow this advice. Be different.
Did you use Google Search and read the below IB web page:
https://www.interactivebrokers.com/en/software/am/am/funding/withdrawingfunds.htm
The daily and weekly limits are clearly spelled out here.
I have $X million in various stocks, no cash, no margin used at all. Net Liq shows the same $X -- same as Equity With Loan. "Buying Power" shows as $5X which is what I'd expect.
The cash withdrawal limit is an odd number like $507,642.18 and I have no idea how that number is calculated, as it's not a multiple of anything else.
As far as I can tell, the issue is because I recently created and funded my account (~1 week). Maybe there's some sort of cooldown period. Can someone confirm, with a portfolio of $X, a ballpark figure for what you'd expect for "Cash Available for Withdrawal (assuming margin loan)"? I was expecting >$2X.
The cash withdrawal limit is an odd number like $507,642.18 and I have no idea how that number is calculated, as it's not a multiple of anything else.
As far as I can tell, the issue is because I recently created and funded my account (~1 week). Maybe there's some sort of cooldown period. Can someone confirm, with a portfolio of $X, a ballpark figure for what you'd expect for "Cash Available for Withdrawal (assuming margin loan)"? I was expecting >$2X.
The highest amount I could withdraw was 0.5X, when in positions with portfolio margin. IB is conservative in the use of margin calculations, and that is a good thing.
Why the hell you are expecting to withdraw >$2X?
You have $X million in various stocks, no cash.
The most you can withdraw is $X, that is to liquidate all your position and withdraw everything.
If you withdraw $0.8X without liquidating, what is remaining would be $0.2X controlling $X position. You are levering 5x.
The ballpark figure would be withdrawing $0.5x-$0.7x, leaving the account with 2-3x leverage.
If you can only withdraw $0.25X either you are holding a lot of small and illiquid stocks that require high margin or you have to directly ask IB.
You have $X million in various stocks, no cash.
The most you can withdraw is $X, that is to liquidate all your position and withdraw everything.
If you withdraw $0.8X without liquidating, what is remaining would be $0.2X controlling $X position. You are levering 5x.
The ballpark figure would be withdrawing $0.5x-$0.7x, leaving the account with 2-3x leverage.
If you can only withdraw $0.25X either you are holding a lot of small and illiquid stocks that require high margin or you have to directly ask IB.