Need help in IB please

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OneHipCat

Sorry if this is an incorrect forum to post this.

I opened up an IB Margin account thinking they would provide 4 times buying power for me.

But apparently this only applies to US stocks, is this correct? Or can buy more futures aswell?

Thanks everyone
 
Yes, I have been to that page many times.

But say I had 5000 in my account, I thought IB would leverage me 4 times so I would have 20000 buying power. So whatever futures margin requirements would then apply to this 20,000... Do you get me??????
 
From IB's web site:
"Long Marginable Positions: Maximum (25%*stock value..."

I'm thinking the 4 times leverage you are referring to only applies to equities.
 
Quote from OneHipCat:

Yes, I have been to that page many times.

But say I had 5000 in my account, I thought IB would leverage me 4 times so I would have 20000 buying power. So whatever futures margin requirements would then apply to this 20,000... Do you get me??????
More...

For Stocks IB gives you 4 times buying power inside-RTH (regular trading hours), and 2 times buying-power outside-RTH (overnight).

Futures are 1/2 Margin during inside-RTH (see the link in the post above and then the column Intraday-Initial), and about full-margin outside-RTH (see the column overnight-Maintenance)

For example: ES: 1969 1575 3938 3150
Then for your 5000 you can have 2 ES contracts (5000/1969) inside-RTH, but only one overnight.

Hope it helps
Hoi
 
Quote from OneHipCat:

Yes, I have been to that page many times.

But say I had 5000 in my account, I thought IB would leverage me 4 times so I would have 20000 buying power. So whatever futures margin requirements would then apply to this 20,000... Do you get me??????
More...


No. You're confusing equity buying power with futures performance bonds. If you have $3940 in your account, you can trade 1 ES contract overnight or 2 contracts during the day or buy $7880 of stock (ignoring commissions). Note that you need at least $25K to get 4x buying power for stocks - otherwise it's only 2x.
 
It is illegal to allow customers to violate futures performance bonds after RTH. Futures are leveraged enough already.
 
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