IB forex margin requirements

http://www.interactivebrokers.com/en/trading/marginRequirements/currency.php

Is this page making sense or am I being silly? Why is there a margin requirement for positive cash balances in a non-base currency. Thats what its saying to me re euros in the example picture at the bottom.

 

I'm having a hard time understanding that page too.

If I go long 1 (125,000) EUR/USD pair at, let's say, 1.2718. What would be my margin?


Your help is greatly appreciated!!!!

 

2500 USD, if your base currency is EUR or USD.

If your base currency is anything else, expect
double that (according to the genious at IB who
thinks that the position has a double risk if your
base currency is *not* one of the two currencies
involved in the position!)

I mentioned to them that this is unrealistic long
time ago, but what can you do more... they know
everything...

 

Actually, the correct margin is EUR 2,500 = USD 3,180 at the rate given.

 

Yeah, that's what I figured too. Would my margin be lowered, if I add a short EUR futures contract?

 

Well, positive or negative doesn't matter. Whether you are:

1) long EUR/USD (long EUR and short USD)

or

2) short EUR/USD (short EUR and long USD),

your margin requirement is exactly the same in each case, here 2% of the position value. Not just at IB -- anywhere (not necessarily 2% margin rate, of course). Does that make sense?

 

According to that page, the answer clearly has to be "yes." However, I no longer trade spot at IB and have not verified first-hand that such spot-futures cross-margining is, in fact, enabled in TWS, on the fly. Would not take it for granted, until you do (verify), or hear from someone else or IB conclusively.