Is anyone day trading with IB Portfolio margin account?

R

Risepoint1879

I am curious what kind of margin they give portfolio accounts. Can't get a straight answer out of them because they always change it based on how risky they judge a stock to be, and how spread out your position is.

Is anyone doing this on a daily basis, going in an out of single stocks? Trying to see if they generally offer 6:1.
 
For some stocks they require higher margins, but for most large cap stocks it is 6:1. I think the margin is also higher if you concentrate everything in a few stocks. You can test it out in paper trading first.
 
I have PM. Trading AAPL only (no other positions), for example, it required 20% for initial margin. I believe it's 30% for shorts. You can use order entry to see what the requirement will be for the order.
 
elt894 said:
For some stocks they require higher margins, but for most large cap stocks it is 6:1. I think the margin is also higher if you concentrate everything in a few stocks. You can test it out in paper trading first.
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Same for shorting?
 
qlai said:
I have PM. Trading AAPL only (no other positions), for example, it required 20% for initial margin. I believe it's 30% for shorts. You can use order entry to see what the requirement will be for the order.
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That is high for PM as the OCC require 15% and we require 15% for DT and 18% overnight for accounts under $5mm.
 
It varies greatly. It can be 10:1 or more on low volatility ETFs, 6:1 for large caps, 1:1 for most biotechs and for quite a few with over 1bln cap less than 1:1.
Last week I experienced liquidation with just over 1.3:1 margin, 6 equities and nothing with a cap below 1bln.
 
Right, the platform is showing me 15% Margin, but the Rep. said that that's the "up to" not what their algorithm will allow.
 
d08 said:
Last week I experienced liquidation
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That sucks ... I believe they have some formula which they suggest to follow to avoid liquidation. Did you not follow it intentionally or just got a hair over it unintentionally? Just curious because for some strategies it's not a big deal, but for some it would be pretty bad.
 
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