Def, your post below from page No5

I don't see the hang-up you have with margin. First this thread is about FUTURES. Second, all the information you request is available on the IB web site. This is not a customer support forum for IB. Nevertheless, since you continue to attack me, I've pasted the information below from our web site. I've already answered that we do not charge over the SPAN margin requirements of the exchange where you said you'd pay me $1000 and switch all 5 (why 5?) of your accounts to our firm. I'm sure you won't adhere to your side of the bargain. The paste below should answer your questions. If it doesn't please send a mail to

[email protected] if you are seriously considering opening an account. Since you are not, please give it a rest.

IB Margin Overview

IB calculates initial margin requirements at the time of each trade, maintenance margin requirements on a real-time basis, and Reg T margin at the end of each day, and will liquidate positions on a real-time basis if there is a margin deficiency. Real-time margining allows IB to maintain low commissions because IB does not have to spread the cost of credit losses to customers like other non-automated brokers.

All of the calculations below as well as other real-time account statistics can be found in the TWS account window. For a detailed description of the account window and its underlying calculations, see the TWS User's Guide.

It should be noted that all liquidation are subject to the normal commission schedule. Advisor clients will not be subject to advisor fees for any liquidating transaction.

New Position Margin Calculations

Upon submission of an order request, a check is made against real-time available funds. If available funds including the order request >=0 the order is submitted, if it is negative the order is rejected. The following calculations are used to determine available funds:

Securities available funds = Securities equity with loan value - Securities initial margin requirement.

Commodities available funds = Commodities net liquidation value - Commodities initial margin requirement

In addition, you are required to have a minimum of $2,000 or USD equivalent of securities equity with loan value or commodities net liquidation value to open a new position.

Maintenance Margin Calculations

On a real-time basis, excess liquidity is checked to ensure that it's >=0, if it is negative the account is subject to liquidation on a real-time basis. The following calculations are used to determine excess liquidity:

Securities excess liquidity = Securities equity with loan value - Securities maintenance margin requirements

Commodities excess liquidity = Commodities net liquidation value - Commodities maintenance margin requirements

Reg T End of Day Margin Calculations

At the end of each US trading day (15:50-16:00 ET), a Special Memorandum Account (SMA) is checked to ensure that it's > =0, if it is negative the account is subject to liquidation. In addition, no cash withdrawal will be allowed that causes SMA to go negative on a real-time basis. SMA is calculated for all securities (stocks and options) regardless of country of trading as follows:

Special Memorandum Account=Maximum ((Equity with Loan Value - initial margin requirements*), (Prior Day SMA +/- change in day's cash +/- initial margin requirements**))

*

Calculated at the end of the day under US margin rules.

** Calculated at the time of the trade under US margin rules.

Margin Models

Margin requirements are calculated either on a rules basis or a risk basis.

For rule based margin systems, predefined, static calculations are applied to each position or predefined groups of positions (“strategies”). The following instruments are margined using rule based margins:

US stocks, index options, and stock options

Canadian stocks, index options, and stock options

Dutch index and stock options

The calculations for each of these products are described under the Trading/Margin pulldown menu.

For risk based margin systems, exchanges consider the maximum one day risk on all the positions in a complete portfolio, or subportfolio together (for example, a future and all the options delivering that future). The general calculation method is as follows:

Exchange assigns scanning ranges for price movements, volatility shifts, and other risk directions. The ranges are based on observations of historical performance of the underlying instrument.

Every instrument (stock/option/future) is valued over the ranges of price, volatility, etc. The resultant value matrix is distributed to Interactive Brokers on a daily basis.

IB values the (sub)portfolio over the matrix and determines the worst case scenario loss using standard models approved by the exchange.

The margin is calculated as the difference between the current portfolio value and the worst case value

Margin requirements for each underlying are listed on the appropriate exchange site for the contract. A summary of the requirements for the major futures contract requirements as well as links to the exchange sites is available on our Futures Margin Requirements page.

Restriction on Leverage

There is a real-time check on overall position leverage, as follows: The Gross Position Value cannot be more than 50 times the Adjusted Net Liquidation Value. Alternatively, this can be expressed as:

2% securities gross position value > Net liquidation value - Futures option value

Liquidations may occur if the Gross Position Value exceeds more than 50 times the liquidation value.

Universal Account

Although the Universal AccountSM should be viewed as a single account for trading and account monitoring purposes, for regulatory and segregation purposes, there exists a separate securities and commodities account. If there is a margin deficit in either your securities or commodities account, cash will be immediately transferred to protect the margin deficit. At the end of each day, any excess cash in your commodities account will be swept to your securities account.