Cash / Interest / IB

Discussion in 'Interactive Brokers' started by saschabr, May 27, 2002.

  1. Hello Guys,

    for those of us who trade only intraday (use of 4x margin possible) and have a larger cash balance in their account
    there is one question: have you found an alternative
    putting your cash in where you get better interest than
    what IB pays.

    I mean, have you found a possibility to buy an exchange
    listed bond, trust or other fixed income vehicle (which
    must be fully marginable) to improve your whole account
    return rate ?

    Unfortunately, i did not.
    However, with a larger account this can be an interesting
    question.

    Regards,
    sascha
     
  2. ktm

    ktm

    I don't think you could do this risk free...not easily anyway. I will sometimes buy index ETF shares and either collar the position, write outright against it or create some other type of credit transaction. While considering the collar proceeds as "interest", my position reflects a further hedge against other underlying positions I am holding at the time (and derivatives on those). I have only recently starting doing heavier analysis on ETFs and I usually only trade those that have options.

    Hope that helps.