For shorting 3X/-3X ETF with IB, how much money do I need to maintain in my account?

El OchoCinco said:
Exactly, set up the order and before transmit it shows you the margin impact. I do it all the time to size positions.
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For "borrowing" money to buy stock or doing leveraged FX trading , do I just make trade as normal but with the order amount greater than my cash amount?
 
Your leverage can’t be over 4/1. So 75% margin will be needed.

I apologize this would be for buying, sorry idk on shorting.
 
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GloriaBrown said:
For example, I have 100,000 USD in my IB account, then how much money I can use to short a 3X/-3X ETF?

Thanks.
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Dunno about IB, but if i recall correctly, Ameritrade would let you have $110,000 in buying power on that 3xs ETF if you go long or short. That being so, and since they would let you have $400,000 of intraday buying power on a non-leveraged ETF, unless you plan to hold overnight, you may find the non-leveraged ETF better. My calculations for intraday showed a bit more bang for the buck in that scenario.
 
birdman said:
Dunno about IB, but if i recall correctly, Ameritrade would let you have $110,000 in buying power on that 3xs ETF if you go long or short. That being so, and since they would let you have $400,000 of intraday buying power on a non-leveraged ETF, unless you plan to hold overnight, you may find the non-leveraged ETF better. My calculations for intraday showed a bit more bang for the buck in that scenario.
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birdman, so if you have $100,000 in an Ameritrade account, you can short $110,000 of a 3x ETF, or go long $400,000 of a regular non-leveraged ETF (what about going long a levered 3x ETF that would be some pretty serious leverage LOL). Might going short the 3x still be better off it it results in less margin interest? Not sure how that works.

I was always under the impression, maybe because I've only had an IB account for years, that you could not invest more than 2x the amount in your account. So if I have an account with $100,000, the absolute max I could invest in that account would be $200,000. Sounds like that is just some IB requirement and not general margin account rules? My mind is blown!

Thanks!
 
Base on what I see from IB TWS, the maintenance margin is different for every 3x etf. Look like the popular one has much lower maintenance margin.

The maintenance margin for shorting vix etf is damn high
 
GloriaBrown said:
Base on what I see from IB TWS, the maintenance margin is different for every 3x etf. Look like the popular one has much lower maintenance margin.

The maintenance margin for shorting vix etf is damn high
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Yup, tell me about it. Nuts.
 
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