Intraday Buying Power

[Love Trading]

Say I have an account at IB, $50K.

Hold $100K of equities overnight, and liquidate all at the open the next day and now $50K in cash again.

But how come I do not have $200K day trade BP any more, what is my BP, and is it possible to get $200k for the day?

 

[TheROTrader]

why dont you ask them? perhaps they would know better than us.......just maybe

 

[WinstonTJ]

read the rules - diff overnight BP than intra-day BP

 

[Love Trading]

Quote from WinstonTJ:

read the rules - diff overnight BP than intra-day BP

Sure we all know Overnight BP 2x, Intra-day BP 4x

But the problem is you do not get 4x if you have trades carry over from overnight.

Here is what I found on IB site:

Buying Power
Buying Power represents the day trading leverage that a Reg T margin account has available. The buying power figure is arrived at using the following equation:

((Lesser of: Equity With Loan Value or Previous Day Equity With Loan Value) - Initial Margin)*4

Notice Lesser of.

Can someone explain the fomula for me if you have margin loans at the end of previous day. Thanks

http://ibkb.interactivebrokers.com/node/100

 

[Love Trading]

Anyone?