SMA (Special Memorandum Account) is a line of credit created for Regulation T (Reg-T) margin accounts when depositing funds and when the market value of securities in the account increases. It is important to understand the following key points about SMA:
- Nature of SMA:
- SMA is neither equity nor cash
- It only includes funds in your IBKR Universal Account's Securities segment
- The SMA balance is not a transferable cash balance
- Account Impact:
- A negative SMA during Regulation T enforcement period (15:50 ET to 20:20 ET) may lead to forced liquidation of positions
- For non-US stocks, liquidation may occur at the next market open for that country
- Monitoring Your SMA:
- To keep track of your SMA balance:
- Log in to your account
- Check the TWS Account Window
- Look for the SMA balance under the Balances or Margin sections
- To keep track of your SMA balance:
- Best Practices:
- Maintain a positive SMA to avoid potential forced liquidations
- Be especially cautious of negative SMA values at 15:50 EST (Eastern Standard Time), as this may trigger liquidation before market close
Additional Information