IB margin for stocks???

[noname]

I thought You needed 50% of the position size for US stocks. For weeks I have held the same positions which has me leveraged with only about 33% of the total.

These arent the numbers, but my example is that my Net liquidation value is 10,000 yet IB has let me hold 30,000 worth of US stocks for weeks.

How is that?

 

[IBj]

Quote from noname:

I thought You needed 50% of the position size for US stocks. For weeks I have held the same positions which has me leveraged with only about 33% of the total.

These arent the numbers, but my example is that my Net liquidation value is 10,000 yet IB has let me hold 30,000 worth of US stocks for weeks.

How is that?

50% is reg-T and only applies on the trade date (i.e. kind of like an initial margin). Thereafter, NYSE 25% maintenance margin applies implying 4:1 leverage. This is all on our web site. Just look under the margin area.

 

[Trader_Herry]

Quote from IBj:

50% is reg-T and only applies on the trade date (i.e. kind of like an initial margin). Thereafter, NYSE 25% maintenance margin applies implying 4:1 leverage. This is all on our web site. Just look under the margin area.

http://www.interactivebrokers.com/e...ements/marginRequirementsUs.php?ib_entity=llc

Do you apply 1 uniform margin (ie intraday 4:1, overnight 2:1 for LONG positions( across EVERY stocks, ETFs and warrants across ALL countries?

 

[IBj]

Quote from Trader_Herry:

http://www.interactivebrokers.com/e...ements/marginRequirementsUs.php?ib_entity=llc

Do you apply 1 uniform margin (ie intraday 4:1, overnight 2:1 for LONG positions( across EVERY stocks, ETFs and warrants across ALL countries?

Margin is applied according to the rules of the country/exchange/settlement house. Since few non-US cash markets define a margin requirement, we apply 25% in absence of other info. Where a stock has listed derivatives, then the derivative exchange provides SPAN/TIMS or similar VAR system margin and we use these parameters as the basis for our margining, also for the cash instrument.

 

[Trader_Herry]

Quote from IBj:

Margin is applied according to the rules of the country/exchange/settlement house. Since few non-US cash markets define a margin requirement, we apply 25% in absence of other info. Where a stock has listed derivatives, then the derivative exchange provides SPAN/TIMS or similar VAR system margin and we use these parameters as the basis for our margining, also for the cash instrument.

Can the margin "obtained/available for stocks/derivatives" be used on futures and options?

If so, how much? The same as above or different?

Say I have $1,000,000. I would like to spend max 50% of buying power on futures, ie $500k buying power. Others go for stocks.

I daytrade. As the intraday margin is at 50%, I can only use $250k ($500k * 50%) on futures.

Is it possible to use about $125k only to buy $500k worth of futures? I know the intraday margin is not negotiable. But I'm not asking that.

Now I can buy/short sell stocks at $500k + $375k [saved from margin]. How much margin (offered) on stocks can I use to open future contracts?

Thanks a lot!

 

[IBj]

Quote from Trader_Herry:

Can the margin "obtained/available for stocks/derivatives" be used on futures and options?

If so, how much? The same as above or different?

Say I have $1,000,000. I would like to spend max 50% of buying power on futures, ie $500k buying power. Others go for stocks.

I daytrade. As the intraday margin is at 50%, I can only use $250k ($500k * 50%) on futures.

Is it possible to use about $125k only to buy $500k worth of futures? I know the intraday margin is not negotiable. But I'm not asking that.

Now I can buy/short sell stocks at $500k + $375k [saved from margin]. How much margin (offered) on stocks can I use to open future contracts?

Thanks a lot!

you asked this question in 2 threads. Please see the other one where I answered.