Day Trading an IRA with IB

Discussion in 'Interactive Brokers' started by Spunky, Mar 11, 2006.

  1. Spunky

    Spunky

    In order to day trade US futures with an IRA at IB, it is my understanding that leverage is not allowed. That being the case, what is the max number of YM contracts that can be bought with $50,000 in the account?
     
  2. Schaefer

    Schaefer

    WWW.ECBOT.COM

    You might want to read up on how YM contract works and how much it's worth per contract. Since IRA account will not let you borrow money/margin, I don't think your $50,000 will even get you a single contract.

    Good luck :)
     
  3. def

    def Sponsor

    that's incorrect. everyone refers to the collateral required for futures as "margin" but the correct term is performance bond. At IB, the intraday "performance bond" required for YM future is: $1219, with a maintenance requirement of $975. To hold overnight, $2438 is required with a maintenance requirement of $1950.

    Thus for 50K you should be able to have an open position interday of 40 futures.
     
  4. yes i have a 200k ib account and have held 15 emini's overnight so that 50k per contract is wrong. can't bear ib for an ira. my ira is up 60% in 2 years doing options and futures
     
  5. Schaefer

    Schaefer

    Thanks for clearing that up for us def, if that's the case I'm gonna have to open an IRA account with IB.

    Another question though, do I have to open a regular IRA account or the margin IRA account to day trade eminis?

    Thanks in advance :)

    Edit: Spunky, sorry for the wrong info. I'm glad you brought it up though, now I know.
     
  6. Spunky

    Spunky

    Thank you Def for your prompt and always accurate answer. I was hoping that you would clear this up, not that I would assume such a large risk but trading the futures with an IRA without leverage is confusing to me and it is good to know the limits.
     
  7. Just remember leverage has several meanings. With futures you're not trading on margin directly, but you are highly leveraged.

    With stocks you can't borrow but they do waive the T+3 requirement in some ways. Check their site for details.


    Be very careful with futures....watching a 100 point move against you in YM futures is stomach churning!!!!! Nothing can prepare you for how quickly you can lose (and make) money with futures....