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IB Real-Time Margining
Margin ModelsRule-based: Predefined and static calculations are applied to each position or predefined groups of positions. Risk-based: Exchanges consider the maximum one- day risk on all the positions in a complete portfolio, or subportfolio together. IB Margin AccountsReg T Margin: Margin requirements are computed in real-time under a rules-based model, with immediate position liquidation if the minimum maintenance margin requirement is not met. Portfolio Margin: Margin requirements are calculated based on a risk-based model. Customers must maintain account equity of USD 100,000. Integrated Investment Account
IB Margin CalculationsIB applies margin calculations to Reg T Margin accounts as follows:
At the time of trade and in real time throughout the trading day, we apply our own initial and maintenance margin requirements. At the end of the trading day, IB applies the Regulation T initial margin requirement. Time of Trade Margin CalculationsWhen you open a new position, we apply:
Initial Minimum Equity Requirement
IB Initial Margin Calculation
IB Initial Margin Calculation – SecuritiesInitial Margin Calculation Percentage depends on asset type. For example: IB Initial Margin for a Long Stock Position = (30% * stock value) or $2,000, whichever is greater. *Our Margin pages list Initial and Maintenance Margins for all IB asset types. IB Initial Margin Calculation – CommoditiesPosition Leverage Check
Position Leverage CheckReal-Time Margin Calculations
IB Maintenance Margin Calculation – SecuritiesIB Maintenance Margin Calculation – CommoditiesReal-Time Position Leverage CheckReal-Time Cash Leverage CheckDecreased Marginability CalculationsFor Reg T accounts, IB increases the margin requirement for stock positions exceeding 1% of the published shares outstanding from its default margin requirement up to 100%. At 5% concentration, positions have a 100% margin requirement. Soft Edge Marginingwe calculate Soft Edge Margin (SEM) during the trading day. From the start of the trading day until 15 minutes before the close of the trading day, Soft Edge Margin allows for an account’s margin deficit to be within a specified percentage of the account’s Net Liquidation Value, currently 10%. When SEM ends, the full maintenance requirement must be met. When SEM is not applicable, the account must meet 100% of maintenance margin. If an account falls below the miniumum maintenance margin, it will not be automatically liquidated until the it falls below the Soft Edge Margin. This allows a customer's account to be in margin violation for a short period of time. Soft Edge Margin is not displayed in Trader Workstation. Once the account falls below SEM however, it is then required to meet full maintenance margin. SMA and End of Day Margin Calculations
“today's trades initial margin requirements” = US Reg T Initial Margin requirements Overnight Margin CalculationsStocks and futures have additional margin requirements when held overnight. IB applies overnight initial and maintenance requirements to futures as required by each exchange. Additional Useful CalculationsDetermine the Last Stock Price Before the Position is Liquidated
How Much Stock Do We Liquidate?
Margin Reports
Real-Time Monitoring
The TWS Account Window Margin WarningsDisplays color-coded messages in the Account window and pop-up warning messages to notify customers that they are approaching their margin limits. Margin What-Ifs – Order Preview WindowTips and Tricks
Use a Paper Trading Account to Experiment with MarginFind IB Margin Requirements on Our Web SiteUse the Trader Dashboard
What-If Margining: The Order Preview WindowLiquidate Last Setting in the Account WindowQuickly Close a Position from the Account WindowSet Up Margin AlertsSet up alerts based on the state of your margin cushion:
Any symbols displayed are for illustrative purposes only and do not portray a recommendation. Interactive Brokers LLC is a member of NYSE, FINRA, SIPC What is initial margin and maintenance margin?The initial margin is the amount a trader must deposit with their broker to initiate a trading position. The maintenance margin is the amount of money a trader must have on deposit in their account to continue holding their position, which is typically 50% to 75% of the initial margin.
What is the minimum maintenance requirement for long margin accounts?Financial Industry Regulatory Authority (FINRA) has set the minimum margin requirements for leveraged accounts at a maintenance margin at 25% of the total value of securities in a margin account.
What are the initial and minimum maintenance margin for stock positions in short accounts?Note that the initial margin requirement must be satisfied before purchasing or selling short any securities, every time when a position is opened. There is also a minimum maintenance margin requirement of 25% for long positions and 30% for short positions.
What are the initial margins for stock positions in long and short margin accounts quizlet?Initial margin for a short stock positions is set by the Federal Reserve (FRB is the Federal Reserve Board) under Regulation T at 50%. Maintenance margin is set by FINRA at 30% for short stock positions and 25% for long stock positions.
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