Portfolio Margin Requirement for BAB

Discussion in 'Retail Brokers' started by mikepham1983, May 15, 2013.

  1. Anyway knows of the portfolio margin requirement if i wanted to buy 100,000 dollars worth of BAB. There are no options for this etf.

    Thanks
    Mike
     
  2. 1245

    1245

    BAB is not listed in the OCC data base becasue their are no options. When a stock is not listed it often reverts to Reg-T margin, but your broker might require more. Probably 50% or $50,000 even in a PM account.

    1245
     
  3. ids

    ids

    The margin is 30% if you are concentrated in this ETF. It is 15% otherwise. This information is valid for Interactive Brokers portfolio margin account. Other brokers could have very different requirements.
     
  4. how does ib determine if this position is concentrated?

    Thanks
    Mike
     
  5. ids

    ids

    It is a bit hard to explain in precise terms but roughly if you have just one or two stocks or ETF in your portfolio, it is concentrated. If you have let's say 6 or more about equally weighted stocks or ETF, the portfolio is not concentrated.