Trading around 500K daily with 30K account

Discussion in 'Retail Brokers' started by CA04, Feb 29, 2012.

  1. CA04


    My account at IB is around 30k but I scalp intraday. I put on very large positions when the setup is right. I use stops and never add to a position or average in.

    This means that I routinely trade a total $$$ amount of 300-500K every day.

    Average winning day is around 500 and average losing day is 250.

    I'm wondering if Interactive Brokers will A) care if I do this as long as my account stays above 25K and everything is closed out by EOD
    and B) charge me a lot for borrowing so much intraday?

    Finally, does anyone know what exact time IB enforces Reg-T and liquidates you? I get a message around 3:45 usually, that says it will commence in under 10min. I've never been liquidated, I'm just wondering if there is an exact time.
  2. lwlee


    What are you talking about? They will liquidate like within 10 minutes of the notice. It's happen to me.
  3. d08


    The 10 minute rule applies intraday also, read about intraday margin.
    However, even if you manage to put on such a big trade (it should be rejected by IB), it would be liquidated fast.
  4. CA04


    I never go over my buying power which is 4x account value so around 130k... I'm saying total $$$ money traded each day is around 500k (this is over many trades).

    I'm still mainly wondering what IB charges for this kindof intraday borrowing....
  5. lwlee


    I spoke with IB about it one time. They mentioned that you should make sure your Current Excess Liquidity (?) is never negative.
  6. CA04


    I'm finding descriptions about margin and how it works / policies on the IB site but can't find what they charge intraday...

    So if I buy a total of 500,000 worth of stock on a 30k account intraday. What rate do I pay IB for this?
  7. TD80


    There is no interest payment on intra-day margin... but it is going to cost you $5K/day in commissions assuming you are paying retail bundled rates...

    I'm concerned that you are asking these sorts of questions and apparently trading this aggressively with only effectively 5K of available drawdown, but hey, to each their own. If nothing else you're going to be some nice liquidity for somebody :)
  8. Bob111


    is it so hard to take a closer look into monthly statement to find out?
  9. d08


    Your questions are very basic, commission schedules are easily available on IB's website. Nothing complicated about that.
    You literally can't buy over your maximum leverage, it'll be rejected and you can't transmit that order. Commissions aren't calculated on worth but rather by amount of shares.
  10. JackR


    If you carry no overnight loan balance you pay nothing. Since you are flat (have no stock in your account at the end of the day), there is no settlement date for any trades you made. The issues you traded will settle elsewhere. IB charges interest on the settled balance. Look at the "Settled Cash" on your statement. From the IB web site:

    Trade Date versus Settlement Date (or Value Date)

    In most large financial transactions, there is a time delay between the date on which the transaction is agreed to, and the date on which it settles, i.e, when the actual payment occurs. In the case of stocks (for example US stocks) there is a three business day settlement period. If the trade is executed on a Monday, under normal settlement conditions the actual transfer of money occurs on Thursday. If the trade occurs on Wednesday, three business days later crosses the weekend so normal settlement is the following Monday. Exchange and banking holidays the fall within the settlement period will push back the settlement date.

    Why is Settlement Date Important?

    Only settled money is considered for interest rate purposes. When one buys stock, one retains the rights to interest on the money until settlement date. Similarly, sellers only start to receive interest beginning on settlement date.

    #10     Feb 29, 2012