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?
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 http://ibkb.interactivebrokers.com/node/100