Newbie SPY question

Discussion in 'Stocks' started by asdfghj7, Nov 15, 2008.

  1. If I have a 35K Reg T margin account with IB.
    My net liquidation value would be 35K
    My RegT margin would be 0
    My Current Available Funds would be 35K
    My Buying Power would be 105K or 140K. (Not sure if IB is 3 to 1 or 4 to 1 leverage)

    If the SPY opens this Monday at 90, and I buy 100 shares, how would these numbers change? Thanks for the help
  2. You can try this and see for yourself, in all kinds of scenarios, using the IB demo.

    just enter edemo into the TWS logon, instead of your regular account name. Then use the password demouser. No security token needs to be used.
  3. ==============
    good question , good market, watch /record much data QQQQ, SPY & occasionaly trade them, myself.

    You may have noticed 5% swings per day,in spy,bear market ,
    so i pray you do well,;
    but that also means easy to lose 5%
    [$5,000 on 100,000 ,OOPS buy power ,,,,,]
    $1700 loss , on 34,000 cash,
    $500 loss on 10,000 cash;
    maybe best, to trade 1 share, 5% of $90 is 4.50 plus comission.

    I hope you are more wise than me when i started, i considered losses negative thinking so didnt think about them;
    but any business written plan needs realistic business exspense[loss] plan

    Answer, varies, depending on day or swing trade.

  4. 100 shares of SPY is only 9K.
    You must have meant 1000 shares.:confused:
  5. I hate margin calls. I have been off the bad habit for years. Now I only buy what I can afford.