IB Forex margin interest

B

bpl1000

On one of the other threads, someone had mentioned IB's forex margin interest is 2%.

Can someone confirm this and maybe point the way on where this is described on IB's website? (I had trouble finding info on margin interest specifically for IB forex).

Also, how does IB compare to others?

Thanks.
 
Steve,
I have a IB account (new) with AUD base currecy, and when i try to trade EUR/USD, the margin required was almost 4%.
example: Long for EUR/USD 50000, the margin required is about 3040 AUD. that is almost 4%.
could you please take time to explaine, your post alwayse very helpful.
 
As far as I understand margin & leverage are 2 different things.
Leverage is investors money that he puts down in order to buy or sell much bigger positions depending on the leverage rate. Margin is brokers money which the investor borrowes from the broker and for that he is charged a margin interest. To refer by IB to leverage rates as margin rates brings in my opinion quite a confusion.
 
Lindsay,
I can't comment without seeing the exact figures on your account. However, the margin requirement probably stems from the fact you have generated a USD balance, a negative EUR balance and a AUD balance. If you check the link I provided above then you'll be able to calculate it.
Electric Savant,
Interest accrues daily, so it doesn't make any difference to you that it is paid monthly.
 
Steve IB,

At my present dealer I get 50:1 leverage, this calculates to $243.30 usd of margin if I purchased 10,000 units of EUR/USD presently. Would you calculate this example at the max margin you allow at IB and post the amount of margin capital tied up, so that I may compare?

Michael B.
 
Quote from ElectricSavant:

Steve IB,

At my present dealer I get 50:1 leverage, this calculates to $243.30 usd of margin if I purchased 10,000 units of EUR/USD presently. Would you calculate this example at the max margin you allow at IB and post the amount of margin capital tied up, so that I may compare?

Michael B.
More...



It's going to be the same.
http://www.interactivebrokers.com/en/trading/marginRequirements/currency.php?ib_entity=llc

Assume your account has US$10,000
Current rate is $1.2=Eur1
You sell Eur10,000. Thus, you receive $12,000.

Your account balances are now
USD=12,000
EUR= -10,000
10,000/50 = EUR300, equivalent to $240 - your margin requirement.
 
ok...thanks, now I gotta figure out what your interest payment is...sheesh who said fxmath is easy! I honestly do not kow how you software people keep all this straight and you have so many instruments from all over the world to keep updated. No wonder your platform updates are so frequent...I think you folks at IB are trying to do the impossible.



Quote from Steve_IB:

It's going to be the same.
http://www.interactivebrokers.com/en/trading/marginRequirements/currency.php?ib_entity=llc

Assume your account has US$10,000
Current rate is $1.2=Eur1
You sell Eur10,000. Thus, you receive $12,000.

Your account balances are now
USD=12,000
EUR= -10,000
10,000/50 = EUR300, equivalent to $240 - your margin requirement.
More...
 
You must log in or register to reply here.
Back
Top