Need help in IB please

Discussion in 'Retail Brokers' started by OneHipCat, Apr 19, 2006.

  1. Sorry if this is an incorrect forum to post this.

    I opened up an IB Margin account thinking they would provide 4 times buying power for me.

    But apparently this only applies to US stocks, is this correct? Or can buy more futures aswell?

    Thanks everyone
     
  2. Yes, I have been to that page many times.

    But say I had 5000 in my account, I thought IB would leverage me 4 times so I would have 20000 buying power. So whatever futures margin requirements would then apply to this 20,000... Do you get me??????
     
  3. Lucrum

    Lucrum

    From IB's web site:
    "Long Marginable Positions: Maximum (25%*stock value..."

    I'm thinking the 4 times leverage you are referring to only applies to equities.
     
  4. Hoi

    Hoi

    For Stocks IB gives you 4 times buying power inside-RTH (regular trading hours), and 2 times buying-power outside-RTH (overnight).

    Futures are 1/2 Margin during inside-RTH (see the link in the post above and then the column Intraday-Initial), and about full-margin outside-RTH (see the column overnight-Maintenance)

    For example: ES: 1969 1575 3938 3150
    Then for your 5000 you can have 2 ES contracts (5000/1969) inside-RTH, but only one overnight.

    Hope it helps
    Hoi
     
  5. alanm

    alanm


    No. You're confusing equity buying power with futures performance bonds. If you have $3940 in your account, you can trade 1 ES contract overnight or 2 contracts during the day or buy $7880 of stock (ignoring commissions). Note that you need at least $25K to get 4x buying power for stocks - otherwise it's only 2x.
     
  6. ids

    ids Interactive Brokers

    It is illegal to allow customers to violate futures performance bonds after RTH. Futures are leveraged enough already.