Best Thread Interactive Brokers

[belflan]

For accounts > 100K (or something like that) they offer "portfolio margin". The rules are complicated and I don't pretend to understand them, but do not necessarily give lower margin requirements on mixed long/short portfolios - it depends on instrument volatility I think.

yeah, they do look complicated, looks like you would only know what margin was required when you actual open the positions

maybe i could give my current forward test positions to IB and IB could do a worked example on this thread maybe ?

belflan

 

[belflan]

if IB do have the time, could you please do worked example of margin requirement for these US stock positions within a long/short portfilio

cheers
belflan

 

[Charlton]

thanks dc,

didn't actually realise it was 50% for overnight, hmmm

what do mean by reg T margin?

volatility of the stock traded should make quite a bit of a difference. I would think. A large underlining positions in a large cap dow stock would be hugely different to the same sized position in a aapl or rimm the that swing about alot more.

really makes you think about all the stuff Grey1 talks about an instruments volatility etc

cheers
belflan

Belflan

For IB it is likely that you have a Reg T margin account. The other possibilities are a cash account that does not allow shorting of stock or a portfolio margin account that requires at least $ 100k.

The Reg T margin account specifies the following:

Borrowing to support equities trading, shorting of equities, currency conversions, and stock trading in multiple currencies. Margin requirements are computed on a formula-based real-time basis, with immediate position liquidation if the minimum maintenance margin requirement is not met. Purchase and sale proceeds are immediately recognized. US securities regulations require at least USD 25,000 (or USD equivalent) in equity to day trade

The following link provides details of margin requirements:

http://individuals.interactivebrokers.com/en/trading/marginRequirements/margin.php?ib_entity=llc

You can check the margin before transmitting an order by choosing Check Margin under the orders menu.

You can also see the margin requirements under the account administration option – there are margin reports showing the initial and maintenance margin.

You might like to check some of these reports and the effects of pushing your paper trading account to the limit, when it becomes available after midday today.


If you decide to open a Tradestation securities account you get a nifty popup screen when you place an order advising you whether you have hit the margin requirements and warning you that you should liquidate positions before the session end. You can also use the Trademanager option to view your daytrading and overnight buying power.

Charlton

 

[Splitlink]

Has anyone got an email offering a set of luggage, worth 500 quid, as a prize?

It could be a scam to get account details.

Anyone from IB, there?

Split

 

[def]

Has anyone got an email offering a set of luggage, worth 500 quid, as a prize?

It could be a scam to get account details.

Anyone from IB, there?

Split

definitely spam. take a look at the mail header to see where you are really replying to.

 

[Trader333]

A bit worrying that it looked like it came from IB which means you have been specifically targeted.


Paul

 

[Interactive Brokers]

Interactive Brokers will not solicit clients or prospects to provide us confidential details about thier account by e-mail.

Please contact our London office 020 7 776 7801 with any specifics regarding the email you are referring to or send us a private email so we can investigate.

A bit worrying that it looked like it came from IB which means you have been specifically targeted.


Paul

 

[ml1985]

Hi,

I'm interested in opening an account with IB and just wanted to ask what the minimum deposit needs to be. On the website it says $10,000 but earlier in the forum it said $2,000

Can anyone clarify which amount it is?

Thanks

 

[firewalker99]

Hi,

I'm interested in opening an account with IB and just wanted to ask what the minimum deposit needs to be. On the website it says $10,000 but earlier in the forum it said $2,000

Can anyone clarify which amount it is?

Thanks

They changed it to 10K recently.

 

[ml1985]

Thanks for the quick reply

 

[Interactive Brokers]

Hi,

I'm interested in opening an account with IB and just wanted to ask what the minimum deposit needs to be. On the website it says $10,000 but earlier in the forum it said $2,000

Can anyone clarify which amount it is?

Thanks

Dear Prospective Client

We ask (i.e., as of last year) the initial deposit to be =>$10,000

 

[Trader333]

We ask (i.e., as of last year) the initial deposit to be =>$10,000

Why was it changed to 5 times the previous ?


Paul

 

[Interactive Brokers]

Why was it changed to 5 times the previous ?


Paul

Our minimum margin account initial deposit was previously $5,000, never $2,000.
It was increased for a number of factors e.g., clients trading in margin accouts should have sufficient funds to trade, considering how volatile markets are and etc).

 

[Trader333]

Thanks for your reply, however in my view it is not about sufficient margin relative to market volatility but more about allowable position size relative to market volatility. There would be a lot less risk to clients and IB if position size was limited by IB based on a model of each markets' volatility at any given time. By just increasing margin this does not in any way cater for the fact that each market can and does have hugely varying levels of volatility. If you had said that you just wanted more cash from each customer to get better overnight interest rates then it would have been more logical than to suggest that markets have become more volatile because the measures I have do not suggest that they are more volatile than they have previously have been.


Paul

 

[firewalker99]

If you had said that you just wanted more cash from each customer to get better overnight interest rates then it would have been more logical than to suggest that markets have become more volatile because the measures I have do not suggest that they are more volatile than they have previously have been.

Paul

Given that the current intraday margin on for example the NQ currently is 1375 USD per contract, and it's been around 2000 couple of months ago, I'd have to agree with Trader333.

 

[Interactive Brokers]

Thanks for your reply, however in my view it is not about sufficient margin relative to market volatility but more about allowable position size relative to market volatility. There would be a lot less risk to clients and IB if position size was limited by IB based on a model of each markets' volatility at any given time. By just increasing margin this does not in any way cater for the fact that each market can and does have hugely varying levels of volatility. If you had said that you just wanted more cash from each customer to get better overnight interest rates then it would have been more logical than to suggest that markets have become more volatile because the measures I have do not suggest that they are more volatile than they have previously have been.


Paul

Paul

We differ to the margin calculations of what the exchanges set which take into account volatility. Your points are cited. Although my point is addressing the initial deposit increase. Again, I respect your points as always.

 

[Hittfeld]

Our minimum margin account initial deposit was previously $5,000, never $2,000.

Sorry to correct you, but when I opened my account (sometime before 9/11) with IB US it was USD 2K!

Regarding the present minimum deposit 10k I heard reports of people who had openend the account - only to transfer some deposits totalling to far less than 10k - yet starting to trade.

Regards

Hittfeld

 

[Interactive Brokers]

Sorry to correct you, but when I opened my account (sometime before 9/11) with IB US it was USD 2K!

Regarding the present minimum deposit 10k I heard reports of people who had openend the account - only to transfer some deposits totalling to far less than 10k - yet starting to trade.

Regards

Hittfeld

Respectfully, I am referring to the minimum deposit for margin accounts, not cash accounts. If you send me the account ids (in a private message) of the clients that initially deposited =< $10,000 and where able to trade in a margin account we will check

 

[ml1985]

Is there a minimum deposit for a cash account?

Thanks

 

[maxima]

Dear Prospective Client

We ask (i.e., as of last year) the initial deposit to be =>$10,000

Dear Interactive Brokers. Can you please comment on my thread - http://www.trade2win.com/boards/brokerages/31969-ib-my-personal-experience.html.

Thank you.
Your deeply sc##ed client.