Interactive brokers touting portfolio margin 1.28% APR

Discussion in 'Retail Brokers' started by darwin666, Jun 27, 2010.


    see the ad here.. they say if u have 100K in a PM account . u can borrow upto 500K... and with many stocks giving over 5% dividend. looks like they are tempting us to do that
    ha ha.. but when the stocks u buy tank. then what do u do ?
    I wonder what happened during the flash crash.? how did those accounts fare?
  2. JackR


    Depending on what is in the portfolio, portfolio margin (PM) requirements can be higher that Reg T margin requirements. PM is based on the computed risk of an account at the day's close of business and changes every market day night. The amount does not vary during the trading day, but IB monitors the accounts' value during the day vs the PM requirement.

    I really doubt that a $100K account could use the full $566K available. However $300K is probably possible. If you have an interest in seeing the amounts available set up a portfolio in your paper trading account and then use the show PM capability. You can vary things around as much as you wish during the trading day.

  3. you definitely can load up to 566K or whatever the the number (i think i changes somewhat depending on what one holds)
  4. seems to me using leverage to capture a piddling 5% div when the stock , any stock, can move much more than that is a fools game, or better yet a game best played with some other shmucks money.
  5. Bob111


    could be a nice play,if you can hedge...let's say tax free muni etf's ...can i hedge them with something?

    Thank you!
  6. and when that stock drops 1% you'll get a margin call. then what?
  7. tell me about margin calls... IB is notorious for being instantaneous for margin calls... they are super quick.. he he.. will liquidate..when i started using IB. .there was a column in my account which was "LIQUIDATE LAST" Y/N.. i soon learnt what it was for. when they need margin. if u set it . for specific positions. they will be liquidated first..