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# IB Margin requirements

Discussion in 'Interactive Brokers' started by trader1, Jul 19, 2001.

I'm new to using IB and I'm having trouble understanding how IB handles margin. I'n not exactly sure how to phrase this question so I will give an example. I'm curently long 4400 shares of QQQ.

initial margin requirement \$92,003
maintance margin requirement \$55,202
stock market value \$184,007
cash balance \$-92,519
equity with loan value \$91,448
net liquidating value \$91,448

what I dont understand is why with the above account, I can't buy any more stock on the following day? It tell's me initial margin requirement with new position will be greater then equity with loan value. Does that mean I can never open a position and go above 2:1 margin? What's the point of maintenace margin then? In my other account at Southwest securities, this exact position would give me excess equity of \$36,246(\$91,448-\$55,202) x2 =\$72,492 to trade with for the following day. If this is how IB really uses margin I will have to find a new broker.

2. ### jsmith

When someone answers the above question.
Where can I find the Buying Power for my account in IB?
Don't see it in the TWS or web Account Info.

JS

3. ### jsmith

4400 shares * \$43 = \$189200
Looks like you have around 91k in your account.

JS

you will get 2x cash buying power with IB as specified by the SEC/NASD rules. (all you guys studying for the series 7 should be able to confirm this).

SMA = Account Equity - (Reg T. Requirement)
Account Equity = Market Value - Debit balance.

RegT% = 50 so applied to your example:
Account equity = 184,007 - 92519 = 91488
SMA = 91488 - (184,007 x 50%) = -515.50
Since the SMA is a negative value, you do not have additioanl buying power. As I understand it, this is the limit allowed in accordance with SEC/NASD rules.