IBKR computes a value referred to as Net Liquidation Uncertainty to account for the dislocation that takes place between stock and option prices when stocks trade but options do not. This value is aggregated with Equity with Loan Value for purposes of determining compliance with the Initial Margin Requirement (i.e., opening orders) but is not used for purposes of determining compliance with the Maintenance Margin Requirement (i.e., position liquidations). As a general rule, IBKR will only liquidate positions where the account is not compliant with the Maintenance Margin Requirement during regular trading hours (at which time Net liquidation Uncertainty = $0)
Is Net liquidation Uncertainty used for margin purposes?
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What is the difference between Available Funds and Buying Power?
Current Available Funds is what you have available to open a new position. In the Securities segment of your account, the Available Funds is the Equity with Loan Value less the total Initial Margin Requirements (ELV - Initial margin). For accounts that have been designated as a Pattern Day Trading account, the Available Funds in the Securities segment is the lesser of either today's Equity with Loan Value or the end of the previous day's Equity with Loan Value at 16:15 EST, less total Initial Margin Requirements. The Current Available Funds to open a future contract is the Net Liquidation Value in the Commodities segment less the total Initial Margin Requirements. Upon submission of an order, a check is made against real-time available funds for all open orders plus the order being submitted. If Available Funds after the order request would be greater than or equal to zero, the order is accepted. If Available Funds would be negative, the order is rejected…
Is my account currently in margin violation?
The Account window of the TWS lets you monitor every aspect of your account activity. Use the Available for Trading section to monitor your account values. Traders should review any line that is highlighted to ensure margin compliance. A securities account is considered to be in margin violation when the Maintenance Margin Requirement is above the Equity with Loan value…
Why is my Buying Power zero when I have positive Excess Liquidity?
IBKR adds House margins to the Initial margin requirement for a contract. If you hold a position that has a higher Initial margin than Maintenance margin, it is possible for your Available Funds to be negative while your Excess Liquidity is positive. Buying Power is projected as the current Available Funds (Equity with Loan Value less Initial Margin) times a multiple, so when your Available Funds is negative you will not be allowed to enter a margin increasing order…
Why did I receive a margin warning notice when I am not borrowing?
IBKR will attempt to issue a warning message to accounts approaching a maintenance margin deficiency (and therefore potential forced liquidation of positions). This message is generated when the Equity With Loan Value…