EUR/USD account and interests earned with IB

Discussion in 'Interactive Brokers' started by MrBean, Jul 3, 2007.

  1. MrBean

    MrBean

    rayl, actually I'm not sure I understand.
    If I keep EUR base currency and convert all my cash into USD, then buy a US stock on margin, why is the margin requirement different than if I had USD as base currency?

    Can you give a numerical example?

    thanks
     
    #11     Jul 13, 2007
  2. rayl

    rayl

    Because once you buy stock, you no longer hold USD cash. Thus you need 2% margin for the USD position, and then whatever margin for the stock.
     
    #12     Jul 13, 2007