Interactive Brokers and Leverage

I have been using a delta-neutral strategy for a while . It has been extremely consistent but not very profitable. My net returns are around 4% p.a.

I am now quite confident borrowing to improve the economics, but care to understand the terms in full prior to doing so. I asked the IB helpdesk for detailed terms, etc....they have not shared much. I do not want to be caught off guard with a margin call.

Any experience or advice regarding this matter?

 

Could you provide some specifics about your strategy?

 

this week return on my bitcoin strategy is 25% hahah

 

You must be using AI, machine learning and neural networks just like me then

 

yes, haha, and did I tell you about my new fund raising round, totally legit.

 

What are the questions you are asking? Different things have different margin requirements.

 

What happens if a share drops 5 per cent overnight. Do they auto liquidate?

 

IB auto liquidates as far as I know, so I think the answer is yes. But only if you violate margin, so... if you are saying you can't lose at all, then you have a problem.

 

No one can not loose at all. Have not been exposed to seriois macro shocks yet?

What is the best way to risk manage a mrgin. Does IB provide any tools?

 

Good question, I wouldn't know the answer to that.