Equity with Loan Value

Discussion in 'Trading' started by Fab1965, Mar 12, 2019.

  1. Fab1965

    Fab1965

    Very basic question with regards to calculation of the above.
    The IB site states:

    "For the Securities segment in a margin account, this is calculated as:
    Total Cash Value + Stock Value + Bond Value + Fund Value + European & Asian Options Value"

    Anyone can explain why options on US stocks are not eligible for inclusion?
     
  2. Robert Morse

    Robert Morse Sponsor

    Options must be fully paid for and are not marginable. The debit balance has to be paid for and the credit balance can be used to offset the debit balance from long stock and other long options.
     
    tommcginnis likes this.
  3. Fab1965

    Fab1965

    That seems to be the case. I was asking what the background for it was, particularly since it is only for US options. Any difference from Asian/EU options?
     
  4. Seb345

    Seb345

    You never know when you would need a loan. 6 month ago I found a really interesting vacation planner that offered me a flight to Amsterdam. I had never been there and I thought that I deserved a vacation. My boss gave me permission to take a vacation for two weeks and I started to search for some cash. Besides the tickets I needed 1200$ for hotel accommodation and tours. Bank refused because of my credit history and my colleague told me to visit PalaceLoan. They were really polite, didn’t ask about my credit history and money was on my bank account the next morning. Guys you have to visit Amsterdam, one of the best places i visited.
     
  5. ironchef

    ironchef

    You took out a loan to travel on vacation? Here on ET, we borrow to trade not to go on vacation.:)