Interactive Brokers: Questions, intraday futures, requirements

H

Hiperfly

Hello guys, I hope you can help me with this, is so important for me:

I have developed an automated intraday strategy for futures, for the IB Java API. It is already tested and now I just need to open an account with them to try it with paper money or real money.

1) Now, I see that for futures the minimum required liquid assets are 40.000€ and a minimum income of 40.000€ per year. I do not have such income or assets, will they check if I do? (I am below 25 years old and I would put in my profile that I am working, not student or unemployed).

2) Also, what minimum $ do I need to manage futures in my account? I read that if I am below 25yo I need at least $3000 to open the account, but I am worried about if I will need at least $10.000 to open it in case I will operate with futures (if I can, my plan is to fund my account with $6.000).

3) In case I need $10.000, can I open the account with such money and withdraw at the same momment $4.000 so I have just $6.000 in my account and still operate with futures? (supose the margin is way below those $6k)

4) What happens if I own a futures contract, and it expires the 3rd friday? Will IB sell it automatically at market price right before it happens?

5) Do I need to know anything else about futures and IB?

Thanks a lot, I really appreciate your help. I hope this is all.
 
What is the point of lying. They may or may not check but either way it appears you are under capitalized to trade futures responsibly.

The margin requirements for futures contracts differs for the various instruments. Index, commodity, currency futures, etc... read and understand each symbols Initial, maintenance, overnight margin requirements. be aware that they can also change during times of extreme volatility and geopolitical events.

You also haven't researched sufficiently on your own. Margin requirements are clearly listed on their website.

The best advice at this stage is to spend the time and read all the information given on their website. Then you can formulate more specific questions.
 
Yogi said:
What is the point of lying. They may or may not check but either way it appears you are under capitalized to trade futures responsibly.

The margin requirements for futures contracts differs for the various instruments. Index, commodity, currency futures, etc... read and understand each symbols Initial, maintenance, overnight margin requirements. be aware that they can also change during times of extreme volatility and geopolitical events.

You also haven't researched sufficiently on your own. Margin requirements are clearly listed on their website.

The best advice at this stage is to spend the time and read all the information given on their website. Then you can formulate more specific questions.
More...
Hi Yogi, thanks for the answer.

You misunderstood me, I didn't ask about the margin requirements but about the IB requirements to trade futures, which may be different of the margins themselves. I would not like to get to the momment in which I am funding my account, and find out that I need to fund it with $20.000 (for example) instead of $10.000 if I want to trade futures with IB.

Also, to be undercapitalized does not mean that I am not ready to test this strategy with real money. I have been testing it for almost 8 months and I will invest money that I can afford to loose. I have enough knowledge to trade futures, most of my questions are focused on IB way of doing things, not on how futures work.

Thanks again.
 
OK, my misunderstanding.

You never stated what instrument. $6K is pretty low for most metals, oil, ES etc...

If you don't have sufficient capital, not sure how you can responsibly test a strategy.

Anyway, good luck, read the site, most information is available.

Some contracts are cash settled, IB does not allow physical settlement, so some contracts will be closed by them if you don't yourself...
 
Physically Delivered Futures

With the exception of certain futures contracts having currencies as their underlying, IB generally does not allow clients to make or receive delivery of the underlying for physically settled futures or futures option contracts. To avoid deliveries in an expiring contract, clients must either roll the contract forward or close the position prior to the Close-Out Deadline specific to that contract (a list of which is provided on the website under the Trading and then Delivery, Exercise & Actions menu options).

Note that it is the client’s responsibility to be aware of the Close-Out Deadline and physically delivered contracts which are not closed out within the specified time frame may be liquidated by IB without prior notification.

reference:
http://ibkb.interactivebrokers.com/tag/exercisedelivery
https://www.interactivebrokers.com/en/index.php?f=deliveryExerciseActions&p=physical
http://ibkb.interactivebrokers.com/article/573

To Trade a margin account you must maintain at least USD 2,000 or non-USD equivalent. For details on margin requirements, see the Margin page.

Pattern Day Traders have higher minimum requirements, which are defined in the Day Trading section of margin requirements.

Reference: https://www.interactivebrokers.com/en/index.php?f=accountConfiguration&p=requiredminimums
 
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