By - JCBean15
Maintenance margin requirements will only start to increase October 5th.
as I understand, they don't do margin calls. They liquidate your positions if your SMA is negative or Net Liq < Maintenance
Thanks, yeah you are correct. I should have been more specific, meaning also getting auto liquidated based on the “increased scanning range” as they phrased it
This. Position will be gone before you know it. I'm sure it is happening, folks love some leverage.
Monitor -> Portfolio
They notify you before markets close if you are in danger of getting liquidated
? they used to do that for me, but I have now been repeatedly liquidated in the last couple months with zero warning except for a bulletin 2 hours after close. (while I only maintain 5-10% market exposure, I top up arbitrage positions weekly)
Monitor -> Portfolio
Also read [https://ibkr.info/node/199](https://ibkr.info/node/199)
You mentioned net liquidity < maintenance margin?? I had a cash account earlier which i recently converted to margin and havent borrowed anything yet. But all this time when i was at cash account, it still shows mm of 5.5k and ex liquiry of 1.2k which i have in cash. Why its showing mm in cash account or even if i havent borrowed anything???
Net liquidation value is 7.7k. & IM and MM is both same 5.5k...why is that??? I am not even borrowing anything.
Do they also liquidate portfolio margin or is that different ?
Yes, they liquidate PM without margin calls as well.
Yes, I got the email that they are gradually increasing the margin requirements starting 9/28, so you should not have seen it yet. Here's the message:
As you’ve likely observed, elevated option implied volatilities indicate that the markets will be confronting elevated volatility both before and after the November 2020 election. IBKR shares that sentiment and believe it’s appropriate to start controlling leverage in a measured fashion in advance.
Consequently, to protect IBKR and its customers, IBKR will increase margin requirements by as much as 35% above normal margin requirements leading up to the November U.S. election. To illustrate, consider a Reg. T margin account with stock XYZ having an Initial Margin requirement of 50% and a Maintenance Margin requirement of 25%. With the increase fully implemented, the new requirements would be 67.5% Initial and 33.75% Maintenance. Accounts subject to risk based margin will have their scanning ranges increased in a similar manner.
This will be implemented gradually each day, increasing Initial margin requirements from normal levels starting September 28th to a rate that will be 35% higher by October 23rd. Maintenance margin requirements will increase in a similar manner between October 5th and October 30th. The new requirements will be implemented each day, after the market closes in New York, and will be effective the next trading day.
IBKR may make additional changes to the margin on certain products, or all products, depending on volatility. This includes changes built into the standard margin model as well as any new house margin requirements that may be imposed.
Interactive Brokers Client Services
time to move account to an other broker