About liquidation even without leverage

Discussion in 'Interactive Brokers' started by ofinance, Apr 16, 2020.

  1. ofinance

    ofinance

    In a margin account Is it possible to have positions liquidated even without using margin? Let's say i have $10,000 and buy 100 IBM at $100, if IBM falls to $50 do i get liquidated even though iam not using leverage? I know it wouldn't happen in a cash account but how about a margin account?
     
  2. newwurldmn

    newwurldmn

    No
     
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  3. ofinance

    ofinance

    I hope you are correct :) in another thread someone said that there is liquidation if net liquidation value falls below maintenance margin, well it would happen with a 50% fall.
     
  4. cvds16

    cvds16

    there is no such thing as maintenance margin in an account that doesn't use leverage ...
     
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  5. ofinance

    ofinance

    When you go to tws there is a value in maintenance margin even without using leverage but maybe the IB algorithm doesn't take it into account when all positions are fully paid for.
     
  6. newwurldmn

    newwurldmn

    No it wouldn’t.
    Net liq would equal 2x the new maintenance margin in your scenario.
     
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