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Interactive Options Course
Lesson 5 of 8
The Interactive Brokers‘ (IBKR) GlobalTrader Stock Swap feature lets the investor swap out the position in a stock they own for an approximately equal value of the stock they would like to own. It is important to note that the stocks must trade in the same currency.
The Swap feature can be accessed several ways in the GlobalTrader app.
In this example, the investor chooses a position from the Portfolio page to swap out. Once the stock is selected, they will tap on the Swap icon at the bottom of the screen and the symbol will populate the sell area.
The investor taps on the buy area and a list of stocks similar to the one being sold will appear. The investor can also see recently searched symbols by tapping on “Recent” or type a symbol into the search bar at the top of the screen. If the investor selects a stock that trades in a different currency a warning will appear, and they must reselect.
Once the investor has chosen a stock, it will populate the buy area and the amount of shares, share price, and the approximate value of the purchase will populate the screen. It is important to note that both orders will be market orders and the size is set to the current position of the stock the investor is swapping out of.
When ready the investor taps the blue “Preview” button, and a summary of the order will appear showing the approximate values of the shares as well as commission. Once the investor is satisfied with the order, they tap the blue “Submit Swap Order” button at the bottom of the page and a screen will appear confirming that the order was submitted and then filled. The investor can tap the blue “Done” button, go back to the Portfolio page and see their new position.
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If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!
The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.
The order types available through Interactive Brokers LLC's trading platforms are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.
Please explain why this feature is useful.
Thank you for reaching out. As stated in the article, the Interactive Brokers‘ (IBKR) GlobalTrader Stock Swap feature lets the investor swap out the position in a stock they own for an approximately equal value of the stock they would like to own. For more information on GlobalTrader, please view our website: https://www.interactivebrokers.co.uk/en/trading/globaltrader/overview.php
We hope this helps!
Can I access this tool from IBKR desktop? Thanks very much.
Thank you for reaching out. No, you cannot access the GlobalTrader swap feature in IBKR Desktop. We appreciate your feedback and have passed it to the appropriate team. In the future, please use this FAQ to leave specific suggestion(s) on how we can improve: https://www.ibkr.com/faq?id=32653353
Also, you can also post in the Feature Poll in Client Portal where other IBKR users can comment and vote:
https://portal.interactivebrokers.com/portal/#/suggestions
We hope this helps!
Will you be able at some point this year to swap assets of different currencies?
Thank you for asking. At this time, this is not on our roadmap. However, we have passed your feedback to the appropriate team. In the future, if you have any specific suggestions, please review this FAQ on where you can leave your feedback:
https://www.ibkr.com/faq?id=32653353
Is Swap counts as a day trade if done to a stock bought the same day? Regarding PDT
Hello, thank you for asking. A Pattern Day Trader is someone who has an IBKR Lite or Pro margin account and who affects 4 or more “day trades” within a 5 business day period. Pattern Day Traders must maintain at least USD 25,000 in their margin account. If your margin account is under USD 25,000 then you are limited to 3 “day trades” in a rolling 5 business day period, but if you use all 3 “day trades” then your account is flagged as a “Potential Pattern Day Trader”.
Users may elect to downgrade from a Margin type account to a Cash type account as cash accounts are not subject to Pattern Day Trading. Please review this FAQ for more information: https://www.interactivebrokers.com/faq?id=23298902
We hope this helps!
Is there a way to swap just one part of position or only full position can be swapped?
Thank you for asking. The size is set to the current position of the stock the investor is swapping out of. We hope this information is helpful!
Swap from USD Stocks to Bitcoin would be good?
Is this swap feature provided as default or do I have to enable it first to see “Swap”? I am not seeing the Swap feature.
Does swapping stocks trigger CGT event?
Thank you for reaching out. Please review this resource: https://www.ibkrguides.com/kb/article-924.htm
Please note that IBKR does not provide tax advice.
We hope this helps.
Is this feature for CASH accounts?
Thank you for asking. Yes, the GlobalTrader Swap feature is available given you have enough settled cash. We hope this answers your question!
Can I swap a stock I have for more than another one that I already own?
Thank you for asking. Yes, this is possible. This feature allows you to close a position in one asset and open a position in another with a single order. We hope this helps!
Why do you impose closing the whoke position? It would be useful to be able to set the size of the swap for rebalancing purposes without necessarily having to close the whole position.
What means: “Available converted to base**Cash needed for this order…? I can not finish the swap. Why?
Hello, thank you for reaching out and we apologize for the delayed response. Cash accounts purchase assets based on the settled cash value in your account. Margin accounts can purchase assets based on the unsettled cash value in your account. Unlike a margin account, a cash account cannot borrow money from Interactive Brokers to purchase assets.
https://www.ibkr.com/faq?id=34498610
Accounts which have been set up as a ‘Cash’ type do not have access to the proceeds from the sale of securities until such time the transaction has settled at the clearinghouse and proceeds have been issued to IBKR. Securities settlement generally takes place on the second business day following the sale transaction. In addition, funds that have been recently deposited may be subject to a credit hold or withdrawal restriction. The amount you see under “Cash Available for Withdrawal” in the Transfer Funds section of Client Portal will reflect both your settled funds and sales proceeds that have not yet settled. Please note that you can request a withdrawal of your unsettled funds from your cash account, and the system will automatically issue the withdrawal when the funds have settled.
Please view this FAQ to see when your trades will settle: https://www.ibkr.com/faq?id=32643083
We hope this answers your question.
Is swapping considered as a taxable event?
Hello, thank you for asking. Yes, swapping is considered a taxable event. Please note that IBKR does not provide tax advice. If you have any further questions on this, please consult a tax professional who specializes in your region regarding specific questions.
cien
Como activo la opción swap, antes la tenía ?
Hola, gracias por tu pregunta. Para saber cómo funciona un intercambio, consulta estas preguntas frecuentes: https://www.interactivebrokers.com/faq?id=246631822
¡Esperamos que te sea útil!