Yea but if im getting PM, I need greater leverage than Reg T, I wouldn't mind if I can get 3:1, but I want to have that and just look away. I don't want to worry about IB changing requirements to 2:1 when I have 3:1 leverage on a dividend portfolio.
The 15% is not going to happen unless you're running a very diversified portfolio. You're going to be getting effectively 3:1 if you've only got a handful of stocks. No relief for long/short single stocks. They call it a surcharge for concentrated portfolios. The dividing line between concentrated and not concentrated isn't explicit. Use the demo account to test the margin for your proposed portfolio. It's the only way, Open the demo account, then make trades to replicate your portfolio. Look in the account window to see what the margin is.
Yea Im going to try out the demo and see what they say. Like I said, 3:1 is enough for me. If I am mostly invested with leverage, I am just worried IB would change the requirements to 2:1 or something of that nature. So it makes it difficult to hold dividend stocks on leverage if requirements are changing everyday.
Do you know where it shows me what the minimum requirement would be? I made my portfolio in the demo but it didnt give me a percentage in the account window.
If you're after leverage, maybe the stocks or similar stocks have some options you can trade. You can lever up 100x if you like that way, in theory at least.
No i dont want to use options and the only reason I need leverage is for dividend stocks/preferreds. If I was able to maintain 3:1 at the least without IB increasing it, I would be fine with that.
Traveler, I understand that, but what would my minimum be. I probably wouldnt be entitled to the 15% margin requirement.
I have PM margin account with IB. I don't know how to exactly calculate margin in PM as I can do in Reg T and I dont try to do it. I know that it is higher. As you said, it fluctates a lot. One day you have positive cash and the next day even though the market goes in your favour, you get out of margin. I have attached a PDF file which will help you figure out what kind of margin you get in PM. IB also follows the same calculations.
Thanks for the PDF, but it doesn't really help much since I have no plans to trade options on PM. I just want to be long equities.