Intraday Buying Power

Discussion in 'Trading' started by Love Trading, Jan 9, 2010.

  1. Say I have an account at IB, $50K.

    Hold $100K of equities overnight, and liquidate all at the open the next day and now $50K in cash again.

    But how come I do not have $200K day trade BP any more, what is my BP, and is it possible to get $200k for the day?
  2. why dont you ask them? perhaps they would know better than us.......just maybe
  3. read the rules - diff overnight BP than intra-day BP
  4. Sure we all know Overnight BP 2x, Intra-day BP 4x

    But the problem is you do not get 4x if you have trades carry over from overnight.

    Here is what I found on IB site:

    Buying Power
    Buying Power represents the day trading leverage that a Reg T margin account has available. The buying power figure is arrived at using the following equation:

    ((Lesser of: Equity With Loan Value or Previous Day Equity With Loan Value) - Initial Margin)*4

    Notice Lesser of.

    Can someone explain the fomula for me if you have margin loans at the end of previous day. Thanks
  5. Anyone?