IB buying power

[OldTrader]

Quote from Bob111:

Jack! they know my problem. you know the problem, i do..but from IB's point of view-it's not a problem. this is their current policy regarding corp.bonds.. don't like it-go away. just like IBj said above.
so -it's make no sense to me to post and point to margin report or any other statements, account numbers etc..IB is simply refuse to recognize the problem or propose/negotiate any sort of solution(except one above). i post plenty of propositions in this thread, if only someone would listen..

Bob:

It appears that IBj answered your question. IB has made the initial margin on corporate bonds 100%.

So for example, if you buy $40,000 in corporate bonds, you must have $40,000. Let's say the maintenance is 50%. That means that if your equity drops below $20,000 you would either need to liquidate some of the bonds, or put additional cash in the account.

What you cannot do is put up $40,000 in cash to buy $40,000 in bonds, and then turn around and day trade some portion of that equity.

OldTrader

 

[Bob111]

more nonsense from IB-


Jul 14, 2009

Urgent - Imminent Bond Margin Rate Increase



Dear IB Trader,



As you may be aware from previous notifications, IB is in the process of increasing the margin rates on certain corporate bonds commensurate with the current market environment. The following requirements are anticipated to be put in place at 12:00 EST today 20090714;



all GMAC initial 100% maintanance 100% short maintenance 100%

all F initial 100% maintanance 50% short maintenance 100%

all SLMA initial 100% maintanance 70% short maintenance 100%

all JPM initial 100% maintanance 35% short maintenance 100%

all CIT initial 100% maintanance 70% short maintenance 100%



Please manage any resulting market risk as is most appropriate for the account.



Hello! anybody home? they already at 100% rate. not just CIT or SLMA-ALL OF THEM