Interactive Brokers Gearing/Buying power question

[Signate67]

Hi

PLease correct me if I amwrong. My account value is say USD 30,000. All cash no equity bond or derivatives positions.
If i trade US equities intra day with no overnight positions, what net nominal position can i run intra day? USD 60,000 Nominal value in stocks? I was hoping to get a little more gearing/buying power.

Cheers

 

[rmorse]

In a reg-T margin account with $30,000, you max day -trading buying power is 4X or $120,000. For over-night 2X or $60,000. However, any clearing firm can offer you less if they choose.

 

[Signate67]

In a reg-T margin account with $30,000, you max day -trading buying power is 4X or $120,000. For over-night 2X or $60,000. However, any clearing firm can offer you less if they choose.

Grateful. Thanks for clarification.

 

[jk90029]

Hi

PLease correct me if I amwrong. My account value is say USD 30,000. All cash no equity bond or derivatives positions.
If i trade US equities intra day with no overnight positions, what net nominal position can i run intra day? USD 60,000 Nominal value in stocks? I was hoping to get a little more gearing/buying power.

Cheers

Probably, your cash of 30K will be used to BUY of 60K (cash30K + loan 30K)

The ratio of 50:50 varies time-to-time, by FederalReserve, not by each broker.
Back in 1920s before Great Depression, the ratio was 10:90 which was reason for the Great bubble.

There is some youtube clip, to show a shoeshine boy with saving of 10K, who REALLY BOUGHT as much as 100K (with a loan of 90K)
Of course, he lost everything to broke, in October 1929.