Short Selling EXEL: Margin Calculation Issue

Discussion in 'Interactive Brokers' started by maxwinway, Jul 29, 2025 at 12:57 AM.

  1. maxwinway

    maxwinway

    I'm trying to short sell EXEL at $45.10 with a planned investment of $10,000. My IB account's AvailableFunds is $10,000, so I calculated the shares as:
    shares = int(10000 / 45.10) = 221 shares.

    However, the system rejected the order, stating that it exceeded THE INITIAL MARGIN. The IBAPI error message is:
    YOUR ORDER IS NOT ACCEPTED IN ORDER TO OBTAIN THE DESIRED POSITION YOUR EQUITY WITH LOAN VALUE [36033 USD] MUST EXCEED THE INITIAL MARGIN [64520.28 USD].

    According to the IB Margin Requirements:
    Stock Margin Requirements | Interactive Brokers LLC
    https://www.interactivebrokers.com/en/trading/margin-stocks.php

    • 30% × Market Value if stock price > $16.67 per share
    • **$5.00 per share** if $5.00 < price ≤ $16.67
    • 100% of Market Value if price ≤ $5.00
    • **$2.50 per share** if price ≤ $2.50

    For EXEL at $45.10, the margin should be 30% × Market Value, but this doesn't match the error.

    When I manually tested with 100 shares, it seems I need **$28,000 in margin** to short 221 shares.

    Questions:
    1. How can I calculate the correct number of shares I can short?
    2. What's the exact Margin Requirements per share for EXEL?

    Any help is greatly appreciated!
     
  2. newwurldmn

    newwurldmn

    Exel might have a higher req. often brokers do this on volatile names.

    perhaps ib raised the req ahead of earnings.

    my broker is requiring 100perxent.