OTCBB Margin Trading

Discussion in 'Retail Brokers' started by newestmember, Nov 7, 2005.

  1. Can I buy an OTCBB stock trading at 10 cents, through IB, on margin? Not that I would, I'm just curious as to how crazy a person could get!
  2. anything under $5 is full cash. No margin for everyone.
  3. technically you may be able to buy them in Type II but they will have 100% maintenence and will generate no buying power.

  4. ....Penson is now allowing $3.00 stocks to be margined

    Penson Financial Services will reduce the minimum margin dollar value threshold from $5.00 to $3.00 effective 10/3/2005. The change will allow stocks between $3 and $4.99 to be margined at 50% for both initial and maintenance margin.

    The change will offer several benefits to Penson’s customers. It will allow more securities to be purchased on margin by reducing the amount of buying power consumed by trading stocks valued between $3 and $4.99. Also, this change is being made in response to the correspondents' requests to remain competitive with other players in the securities industry. Penson feels this will be a very positive change for its correspondents.
  5. alanm


    Untrue. Many NYSE/AMEX/NASD-listed stocks under $5 are marginable at IB. See http://www.interactivebrokers.com/e...ements/marginRequirementsUs.php?ib_entity=llc et al.

    I was short UAL under $1.

    The answer to the original question is "no". AFAIK, OTCBB stocks are not marginable, though I can't find the exact source of this at the moment.