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Cheaper financing than IB's margin rates?
- Thread starter HockeyPlayer
- Start date
When filled at the bid price shown in the picture 1977.52, this order implies a 6% interest rate for the $200k box, while when filled at the 1995.22 limit you get a more decent 1.24% interest rate but still almost twice the 3 month t-bill rate.I tried selling a box spread. While I seem to get a 200K cash credit, the same amount would be added to both initial and maintenance margin. So at least on a Reg T margin account, it doesn't seem to increase buying power?
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Are there any real chances to actually get a fill for this 1995.22 limit or higher, for 1997.5 (which would be get you the 3 month t-bill rate)? What is a reasonable rate expectation?
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I've realized a nickle off the mid as long as the bid and ask are solid (during normal market hours with no odd on-off bids/asks in the stack).When filled at the bid price shown in the picture 1977.52, this order implies a 6% interest rate for the $200k box, while when filled at the 1995.22 limit you get a more decent 1.24% interest rate but still almost twice the 3 month t-bill rate.
Are there any real chances to actually get a fill for this 1995.22 limit or higher, for 1997.5 (which would be get you the 3 month t-bill rate)? What is a reasonable rate expectation?
In order to calculate the rate, can you please post the execution date, the execution price, the width of the box and the expiration date? TIA.I've realized a nickle off the mid as long as the bid and ask are solid (during normal market hours with no odd on-off bids/asks in the stack).
BTW, mid price implies 1.09% interest for $200k / May.
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Sorry, don't post that kind of information. Just give it a try for a short dated box; at some point you gotta just dive in and get some first hand experience.In order to calculate the rate, can you please post the execution date, the execution price, the width of the box and the expiration date? TIA.
I actually sold rather than bought and got something like 50 basis points above the equivalent Treasury. For reference last summer was the last time I used this.I understand. Can you at least share the interest rate you got?
Thanks. The 1.09% I have mentioned earlier is 0.472% above the today 3 month t-bill rate. Seems quite similar with what you are saying.I actually sold rather than bought and got something like 50 basis points above the equivalent Treasury. For reference last summer was the last time I used this.
Yeah, sounds about right.Thanks. The 1.09% I have mentioned earlier is 0.472% above the today 3 month t-bill rate. Seems quite similar with what you are saying.
Risks on the side, does shorting a box make economical sense compared to a loan? It seems only pros with seats on the exchange can manage to make it profitable ....aligator trade for the rest of us.
I am more interested in shorting short date treasuries if anyone has worked out of it works?
Unlike OP, all monies will stay with IB to fund the purchase of securities.
I am more interested in shorting short date treasuries if anyone has worked out of it works?
Unlike OP, all monies will stay with IB to fund the purchase of securities.