Could you answer these questions please? How do I know if I am using leverage or not? if it's 1:5 or 1:10 or 1: 100? I don't want to use leverage on the MArgin Account how do I do this? I buy and I sell directly? Are there any settings to adjust on TWS? On the account management menu on the IBKR site, I cannot find whether my papers have been validated or not, and also in which country my account has been registered (to check eligibility for the PDT Rules). Thank you.
Reg T margin is 2 x, portfolio margin is 6 x for accounts above $100,000 in any currency or securities. You have to be approved for portfolio margin. have you bought securities for more than the value of the cash you have deposited? If so then you have a margin loan. where do you live?
I will soon deposit $ 2000 on my Margin account, I am shorting 4 shares (500 dollars each share) is this feasible? I live in Tunisia (North africa) the site took me to .co.uk domain, is it United kingdom? at the beginning I accessed IBKR Luxembourg (europe).
IB U.K. has pattern day trader rule. IB Luxembourg has ceased to exist so you could be with IB IE or IB CE which do not have pdt. if you go below 2000 does it cease to be a margin loan and you get liquidated? Try two or three shares.
There are no settings for it, you are making your own setting. Its not hard to understand man. If you say you got 2k account, just go long/short 1,999.99 $ worth of equity and you are on the safe side with 0.01 cents. Besides there is nothing wrong with using margin because this is business. You are not making money from the interest of loan. You make it from your investment. Margin is just supplement. You earn with your investment, they earn with their money and at the end it is mutual business gain. If you would be making a living, earning your bread only by loaning out cash to people with no credibility at 100% interest rate and collect the payables with boys and guns, that would be another story.
I think IB has a 2k minimum balance required to make a trade. So an account of 2k is skating on thin ice, you might not even be able to exit a position.