What is the cost for day trade etf with IB?

G

GloriaBrown

I have 2 concerns:
1. If I buy and sell multiple days a day, what does the cost count? Would there be margin involved even I don't trade more than the money I have in my account since it would be before T+2?

2. If I short an etf multiple time a day, how does the cost count?

Thanks for your sharing.
 
the simplest answers..

trading costs are always cumulative.. if you are doing size and not entering at market all the time, go with tiered and set your routes for what you care about...

you will always trade on margin when day trading, even if you "have all the cash". Keep in mind stocks have to settle, thus t+2 rules apply at all times even when you think they don't... if it's not margin, then it falls under Reg-T for cash... hence why day trading is basically trading on margin, but you still need to be aware of your cash balance to initiate trades.

depending on the account size, switch to portfolio margin... which IMO is good to have as long as not abused.

https://www.interactivebrokers.com/...portguide/marginsummaryregtmarginaccounts.htm

https://www.interactivebrokers.com/en/index.php?f=1451

http://www.themargininvestor.com/portfolio-margin-101.html

PS. you should still take the time to read through all the links and become familiar with the info yourself.. :)
 
If the question is whether you are charged a borrow fee for a short position you enter and close out within the same day, the answer is no. You are are charged 1/365th of the annual borrow fee every overnight (incl. weekends) that you hold a short position, with the notional amount calculated by rounding all share prices up to the next dollar.
 
The 2x vix etf borrow interest rate is 3% to 10% annually in IB, so I dont need to pay any interest rate if I buy/short multiple times and close out before trading hour end with IB?
 
You must log in or register to reply here.
Back
Top