Margin Infographic
What is margin trading?
Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.
Securities
Margin
Commodities
Margin
There are two margin definitions. Securities margin is borrowing money to buy stock.
However, when you invest in commodities, trading on margin involves putting in your own cash as collateral for the contract.
Trading Securities on Margin
Trading securities on margin is most commonly understood as borrowing money from a broker to buy stock.
Securities Margin Requirements
Initial Margin:
How much cash you must deposit to buy securities on margin.
Maintenance Margin:
How much equity you must keep in your margin account.
Stock Price (USD)
Time
45
40
35
20
Margin/Cash Ratio
Daily Mark-to-Market
100%
50%
25%
- Borrowed Funds
- Your Cash
IBKR Margin Account Types
REGULATION T MARGIN
PORTFOLIO MARGIN
Rules based margin requirements are created from a defined formula and governed by Regulation T, FINRA Rule 4210, and IBKR house requirements.
Risk based margin requirements are assessed by profiling the risk of the positions in your account in accordance with OCC requirements. For advanced traders only.
Real-Time Activity Monitoring
Monitor Balances
View your margin balances and requirements in the TWS Account Window in real-time.
Preview Margin Impact
Shows your projected margin balances before entering an order.
Margin Alerts
Receive warnings and set alerts that tell you when your margin requirements are at risk.
Interactive Brokers LLC, member NYSE, FINRA, SIPC; For more information see: ibkr.com/info; For additional information regarding margin loan rates, see
http://www.interactivebrokers.com/marginrates; Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment.
Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at Interactivebrokers.com