ETFS and margin via IB

Discussion in 'ETFs' started by kserra, Sep 24, 2003.

  1. kserra

    kserra

    Not really sure if this is the place for this post, however I was wondering what the available margin is using IB for the QQQ and SPY ?

    Some places I have seen 2:1 but others I have seen 4:1, can someone please clear this up thanks.
     
  2. def

    def Interactive Brokers

    For more info, look under resources/margin/stock on the IB web site. Briefly it is 4:1 until 15:50 PM.

    Day Trading Buying Power Restriction

    The total buying power for any day’s trading is limited as follows: Day Trading Buying Power = ((lesser of prior night’s closing account equity or current account equity) – account maintenance margin requirement) times 4. Opening orders that exceed the account’s Day Trading Buying Power will be rejected.


    Initial

    At the time of the trade, the trade must be within the Day Trading Buying Power, and maintenance margin levels must be satisfied. If new transactions during the day increase the size of existing positions or establish new positions and are not closed by 15:50, then the account must also satisfy Reg. T margin levels (see above) for the new (or expanded) positions to be maintained in the account overnight. If at 15:50 Reg. T margin requirements are not satisfied, new transactions (but not pre-existing positions) will be liquidated so as to avoid the issuance of a Reg. T margin call. Those customers subject to Day Trading Buying Power Restrictions, will have two lines added to their TWS Account Window; 15:50 - 16:00 ET Initial Margin and 15:50 - 16:00 ET Maintenance Margin. These calculations will be used between 15:50 - 16:00 ET to determine margin requirements.


    Maintenance
    Long Positions: 25% for marginable stocks or 100% for non-marginable stocks.

    Short Positions: If last sale price/share >= $5 then maximum ($5 per share, 30% * marginable stock value). If last sale price/share < $5 then maximum ($2.50 per share, 100% marginable stock value). Short sale proceeds are applied to cash and the short position is subtracted from equity.