IB Net Liquidation Value vs Equity with Loan Value

Discussion in 'Retail Brokers' started by jerryz, Jun 25, 2005.

  1. jerryz

    jerryz

    What is the difference between the two?

    Which one is the usual account equity value?
     
  2. Steve_IB

    Steve_IB Interactive Brokers

  3. jerryz

    jerryz

    I had looked at the user guide prior to posting the message.

    This is the definition from the user guide.

    Net liquidation:
    total cash value + stock value + securities option value + bond value

    Equity with loan:
    total cash value + stock value + bond value + (non-U.S. & Canada securities value)

    This is the definition from the Account help.

    Net liquidation:
    total cash value + stock value + options value + bond value

    Equity with Loan:
    margin account: total cash value + stock value + futures option value + bond value


    Looks like net liquidation value is the usual equity value that other brokers give you.

    What is the purpose of the equity with loan value calculation and which one is the correct one?

    Thanks.
     
  4. Steve_IB

    Steve_IB Interactive Brokers

    Equity with Loan Value is used for margin purposes. Your available funds, excess liquidity and buying power calculations use the Equity with Loan Value. Use the definition from your account window as that will be for your account.
    Net Liquidation value is your total account worth.