Max leverage overnight w/ portfolio margin

Discussion in 'Retail Brokers' started by ProgrammerGuy, Feb 6, 2008.

  1. I know that if you have the regular margin, 4 to 1 intra, 2 to 1 overnight...

    if you are getting 1:5.5 intra with portfolio margin w/ about 40 stocks, can you still get that 1:5.5 leverage overnight with those 40 stocks on portfolio margin?

  2. ids

    ids Interactive Brokers

    I suppose you are asking about IB portfolio margining. There is no notion of intraday for PM. It is flat through the day except we are loading new risk parameters after 2 AM EST and the margin can and will change after that. We reserve our right to load new risk parameters any time in case of emergency but in fact we never did it for PM.
  3. thank you ids for that response.

    I was wondering if you could give me a ballpark answer. To the best of your knowledge, say a portfolio consisting of 40 stocks that do on average 2 mil and are fairly large companies, What can you expect the lowest leverage will be in a farily normal example?

    During the trading day say you get 1:5.5 on average. Now I know this does depend, but it'd be real helpful to hear some numbers. Like would the leverage going to 1:3 be fairly normal? or highly unlikely? how about staying at 1:5.5?

    Thanks again
  4. ids

    ids Interactive Brokers

    You can expect leverage better than 1:6 for portfolio consisting of 40 stocks of fairly large companies for 24 hours. It will happen only if positions are spread through the portfolio and not concentrated in a few stocks.
  5. thank you very much, I thought I was gonna get an answer like, well ugh it depends, see if you know know...

    Thanks again