Interactive brokers margin

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May 30, 2022 at 10:20 am #102220

KateMoloney
Participant

I’ve created a spreadsheet to help me determine my minimum equity requirements for day trade strategy.

Just wanted to check my calculations are correct…..

On TWS it says, for example, $100,000 AUD has a borrowing capacity of $666,666 (or a multiple of 6.666 – or 15% equity). So I’ve worked off that figure to ensure my longer term portfolios have enough equity to cover the occasional high volume day for day trade strategy.

Here is the contradiction ….

On IB website it says minimum equity requirement is 25% https://www.interactivebrokers.com.au/ru/index.php?f=233&p=overview3

Yet, in real life, I’ve had two warnings from IB (on high volume trade days) saying my equity was getting close to their 10% minimum equity requirement.

So, just wondering what the hell the answer is ? Figured there would be more brains on here than IB support chat.

May 30, 2022 at 11:07 pm #114793

Nick Radge
Keymaster

Maybe a selection of the stocks you’re trading do not have available margin…?

June 1, 2022 at 11:31 am #114794

BenOsborn
Participant

I’m using TradeStation and they have a list of stocks that are only 50 or 100 leverage (it updates each day). Maybe IB has the same that you can check.

June 1, 2022 at 11:12 pm #114806

KateMoloney
Participant

From IB.

It will help me to get a bit more specific with my calcs.

…………….

The minimum Net Liquidation value requirement to trade in a Leveraged trading account is AUD 2000.

Your account type is Leveraged Trading facility with allows you to create portfolios to the maximum degree of risk / leverage allowed by IBKR Australia. Under this account structure, margin calculations are risk based and hence as per the portfolio structure greater leverage is provided. Here, the requirement on individual stocks (initial = maintenance) generally ranges from 15% – 30%, translating to buying power of between 6.67 – 3.33:1. As the margin rate under this methodology can change daily as it considers risk factors such as the observed volatility of each stock and concentration, portfolios comprised of low-volatility stocks and which are diversified in nature tend to receive the most favorable margin treatment (e.g., higher buying power).

You can refer below article for detailed information:
IBKR Australia Account Types and Products Offerings – https://ibkr.info/article/3352
IBKR Australia Margin Accounts – https://ibkr.info/article/4370
Margin Information : https://www1.interactivebrokers.com/en/index.php?f=24176
Margin Definition: https://ibkr.info/article/1445
Margin methodologies : https://ibkr.info/article/2184
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