Portfolio Margin accounts reporting net liquidating equity below USD 100,000 are limited to entering trades which serve solely to reduce the margin requirement until either:
- the equity increases to above 100,000 or
- the account holder requests a downgrade to Reg T margin through Client Portal
If a Portfolio Margin account reporting net liquidating equity below USD 100,000 enters an order which, if executed, would serve to increase the margin requirement, the following TWS message will be displayed: "Your order is not accepted, margin requirement increase not allowed. Equity with loan value is less than 100,000.00 USD."
Please Note
- Requests to downgrade to Reg. T will become effective the following business day if submitted prior to 4:00 PM ET
- As the Reg. T margin methodology generally affords less leverage than Portfolio Margin, requesting a downgrade may lead to the automatic liquidation of positions in your account in order to comply with Reg. T. You will receive a warning message if that is the case at the time of requesting the downgrade.
Find more information on Portfolio Margin on the IBKR website.
Additional Information