newbie IB margin question.

Discussion in 'Retail Brokers' started by dudeness, Jun 3, 2003.

  1. dudeness

    dudeness

    I have just opened an account with IB, I haven't traded futures before, only stocks.

    I am trying to understand the margin requirements.. could anyone please confirm what I understood so far:

    I look at the margin req. list from this url:

    http://www.interactivebrokers.com/cgi-pub/margin_amer.pl

    Taking 2 examples:

    GLOBEX NQ NQ 1125 900 2250 1800

    I gather that to trade one NQ contract intraday, I would need initial margin of $1125, maint. margin of $900? That would mean leverage of about 1:20?
    For overnights, I would need init. $2250, maint. $1800, that would mean leverage of about 1:10?


    LSSF IBM IBM 433 346 865 692

    Using the same logic, I gather that to trade one IBM contract (SSF@1C), I again get a leverage of about 1:20 intraday and 1:10 overnight?


    If I got this right, then can some explain what does the requirement of 20% (init./maint.) of SSF means? found under this url:

    http://www.interactivebrokers.com/html/marginRequirements/singleStockFutures.html


    Thanks a lot for patience and help

    dudeness
     
  2. dudeness

    dudeness

    Thanks for this LSSF clarification.

    So I understand that the 1:20 intraday / 1:10 overnight leverage applies to the Globex NQ and to the Liffe SSF.

    Thanks
    dudeness