Under SEC-approved Portfolio Margin rules and using our real-time margin system, our customers are able in certain cases to increase their leverage beyond Reg T margin requirements. For decades margin requirements for securities (stocks and options) accounts have been calculated under a Reg T rules-based policy. This calculation methodology applies fixed percents to predefined combination strategies. With Portfolio Margin, margin requirements are determined using a "risk-based" pricing model that calculates the largest potential loss of all positions in a product class or group across a range of underlying prices and volatilities.
You can find more information on Portfolio Margin on the IBKR website and an Overview of the margin methodologies in the IBKR Knowledge Base.
Additional Information
- How is the margin requirement determined for stock carried in a Portfolio Margin account?
- How is the margin requirement determined for options carried in a Portfolio Margin account?
- How can I determine the impact of converting my margin type from Reg. T to Portfolio Margin?
- How do I upgrade to a Portfolio Margin type account?