Interactive Brokers and Leverage

Discussion in 'Retail Brokers' started by tonyf, Jun 26, 2019.

  1. tonyf

    tonyf

    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?
     
  2. Could you provide some specifics about your strategy?
     
  3. TraderSV

    TraderSV

    this week return on my bitcoin strategy is 25% hahah
     
  4. tonyf

    tonyf

    You must be using AI, machine learning and neural networks just like me then :)
     
    nooby_mcnoob likes this.
  5. TraderSV

    TraderSV

    yes, haha, and did I tell you about my new fund raising round, totally legit.
     
  6. What are the questions you are asking? Different things have different margin requirements.
     
  7. tonyf

    tonyf

    What happens if a share drops 5 per cent overnight. Do they auto liquidate?
     
  8. 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.
     
  9. tonyf

    tonyf

    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?
     
  10. Good question, I wouldn't know the answer to that.
     
    #10     Jun 26, 2019