IB Leverage Costs (MOC) - The Chartist

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June 19, 2018 at 4:19 am #101820

GlenPeake
Participant

I’m currently working my way through the Mentor course and I’m considering heading down the MOC Trading System path, which then raised the question below. So for those who are using a MOC (US) system with leverage via IB, I was interested to know….

…..Besides the standard brokerage costs, are there any additional costs for using leverage that would need to be factored in? If so, are you able to provide an example of what those additional fees might be.

Thanks
Glen

June 19, 2018 at 5:30 am #108787

JulianCohen
Participant

Not that I have encountered Glen no. Just brokerage.

It is worth considering though to leave a bit of “padding” in the account so that you don’t encounter margin calls.

As an example, if you have 100,000 in your account and you are running an MOC that uses 40 signals at 10% I would use say 95,000 as my account size in the system so that there is always an extra bit of cash in the account should all signals get executed on the same day.

June 19, 2018 at 10:00 am #108788

GlenPeake
Participant

Perfecto….Thanks Julian.

Thanks for the tip on the padding….

Cheers
Glen
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