If I have 300k in short term treasury bills how much can I trade against it?

Discussion in 'Interactive Brokers' started by klattermusen, May 24, 2023.

  1. So I got some info from IB about t-bills. If I have 300k in short term tbills (under 6 mos) - how much that can I trade stocks with?

    Could I buy 297k worth of NVDA stock for example?

    "The amount of the margin for US Treasurys is dependent on the maturity.

    Government Bonds Margin

    US Treasury Securities Initial Margin Requirements Maintenance Margin Requirements
    Less than six months to maturity 1% * Market Value Same as Initial Margin
    Less than one year to maturity 2% * Market Value Same as Initial Margin
    One year but less than three years to maturity 3% * Market Value Same as Initial Margin
    Three years but less than five years to maturity 4% * Market Value Same as Initial Margin
    Five years but less than ten years to maturity 5% * Market Value Same as Initial Margin
    Ten years but less than twenty years to maturity 7% * Market Value Same as Initial Margin
    Twenty years or more to maturity 9% * Market Value Same as Initial Margin
    Zero coupon bonds with five years or more to maturity 3% * Principal Amount of the Obligation Same as Initial Margin"
     
  2. newwurldmn

    newwurldmn

    It would be dumb to own treasuries and then buy stocks on Margin
     

  3. lol. I appreciate that. I'm just asking a math question for which I am shamelessly dumb.

    Do you know the answer?
     
  4. deaddog

    deaddog

    I believe it varies from broker to broker.
     
    jys78 likes this.
  5. jys78

    jys78

    It will be reflected in your displayed buying power.
     
  6. M.W.

    M.W.

    Not if said individual only held margined stocks intraday. The particulars depend on each broker agreement.

     
  7. newwurldmn

    newwurldmn

    yes. You can buy the stock. I don’t know the exact margin rates but the be heard it’s something on that order.
     
  8. mervyn

    mervyn

    6 month t market value is probably in the high 80s/low 90s. So you can collateralize 270k +/-.
     
  9. zdreg

    zdreg

    People are complicating the issue. The OP wants to know the answer for IB, for which he gave their numbers for valuing US Treasuries.
     
    klattermusen likes this.