Can I buy an OTCBB stock trading at 10 cents, through IB, on margin? Not that I would, I'm just curious as to how crazy a person could get!
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OTCBB Margin Trading
- Thread starter newestmember
- Start date
anything under $5 is full cash. No margin for everyone.
Quote from areyoukidding?:
anything under $5 is full cash. No margin for everyone.
....Penson is now allowing $3.00 stocks to be margined
Penson Financial Services will reduce the minimum margin dollar value threshold from $5.00 to $3.00 effective 10/3/2005. The change will allow stocks between $3 and $4.99 to be margined at 50% for both initial and maintenance margin.
The change will offer several benefits to Pensonâs customers. It will allow more securities to be purchased on margin by reducing the amount of buying power consumed by trading stocks valued between $3 and $4.99. Also, this change is being made in response to the correspondents' requests to remain competitive with other players in the securities industry. Penson feels this will be a very positive change for its correspondents.
Quote from areyoukidding?:
anything under $5 is full cash. No margin for everyone.
Untrue. Many NYSE/AMEX/NASD-listed stocks under $5 are marginable at IB. See http://www.interactivebrokers.com/e...ements/marginRequirementsUs.php?ib_entity=llc et al.
I was short UAL under $1.
The answer to the original question is "no". AFAIK, OTCBB stocks are not marginable, though I can't find the exact source of this at the moment.