Hows does a QQQQ maintence work when going short ?

D

Digs

Say I have $1000 Cash in my account

This means I have buying (LONG) power of $2000 for stocks overnight.

If QQQQ is priced at $32 this means I can Buy or Long 6 lots or $32 * 100 * 6 = $1920

If a stock has short maintenace ( like futures) how does that effect buying power(short) or margin calls etc ?

AT IB website
..."Short Marginable Positions:
Maximum (50%*stock value, short sale maintenance requirement). Short sale proceeds are applied to cash and the short position value is subtracted from equity."...

http://www.interactivebrokers.com/e...ements/marginRequirementsUs.php?ib_entity=llc
 
cubes act just like any other issue out there...50% initial margin, 25% minimum...no money needs to be added until you hit 25%, but you will have some restrictions on your account if you fall below 50%
 
although ib might have a more substantial minimum requirement than the fed requires. in that case, check with their standards.
 
..."cubes act just like any other issue out there...50% initial margin, 25% minimum...no money needs to be added until you hit 25%, but you will have some restrictions on your account if you fall below 50%"...

So if the value of my Short falls below 25% of $1920 I get a margin call !!
 
no...you want a short position to shrink...a long position to grow. you have to invert your thought process on a short. you are selling high first so you can buy low second.

in a short situation, the fed only cares if you are going to have to pay MORE for the stock than you sold it for!
 
So if I short 6 lots @ $32 = $1920

Price goes to $16 my value is (32+16)/32 up 50% so $2880

Price goes to $48 my value is down 50% so $960, near the 50% margin call level...
 
Not if you have $1000 debit (deposit) in the account:

You are almost at the 50% margin at 60 x $32 = $1920
$1000 is ~52% of 1920 no maintenance needed

If the position moves to 60 x $16 = $960
$1000 is ~104% of 960 no maintenance needed

If the position moves to 60 x $48 = $2880
$1000 is ~34.7% of 2880 maintenance required

Also check your math there...$1000 will not by 6 future contracts at any of those prices, if it's equities than you can buy 60 shares.
 
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