How much leverage do you offer for trading bonds?

The amount of Buying Power available for a given trade depends upon a number of factors including the product traded and the account type (e.g., Cash, Reg. T, Portfolio Margin). It is calculated by dividing the Equity with Loan Value…

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…

The maximum leverage offered for any given stock depends upon a variety of factors, including the listing exchange, any regulatory minimums required by the exchange or its primary regulator, the margin methodology available (e.g., Reg. T and Portfolio Margin for IB LLC clients) and any house margin requirements imposed by IBKR…

When trading in a Reg-T account at Interactive Brokers (IBKR), it is important to be aware of several key constraints that are designed to manage risk and ensure regulatory compliance. These constraints include:

1. Regulation T (Reg-T) Compliance:…