How does margin interest work?

Discussion in 'Trading' started by penguin-police, Sep 22, 2009.

  1. My IB account has a 50% maintenance margin. My share value has consistently been more than my cash value recently and it doesn't seem like IB charges me anything for it. I'm borrowing money from them essentially, shouldn't I be charged interest for it?
  2. If your cash balance is greater than zero you are not borrowing any money.
  3. pitz


    If the amounts are reasonably small, it takes them a while to accrue interest. But rest assured, the interest is accruing, and they will deduct it from your account, once a month, if you have borrowed money from them.