How does Interactive Brokers (IBKR) determine if there are sufficient funds for a futures order?

Interactive Brokers (IBKR) uses a specific process to determine if there are sufficient funds for a futures order. This process involves several key components and calculations:

  1. Order Preview and Net Liquidation Value:
    • The "Order Preview" feature uses the Net Liquidation Value for the credit check.
      • This Net Liquidation Value includes:
        1. The Net Liquidation Value in the Commodities segment
        2. Plus any Available unpledged equity in the Securities segment that can be moved to Commodities
  2. Credit Check and Available Funds:
    • The credit check examines the Available Funds in the account.
    • For the commodities segment, Available Funds are calculated as follows:  Available Funds = Net Liquidation Value - Initial Margin
  3. Order Acceptance Criteria:
    • Orders are accepted if there are enough Available Funds to cover:
      1. All existing open orders
      2. Plus the new order being placed
  4. Account Review:
    • To check your account status, you can review two key metrics:
      1. Excess Equity (in the Securities segment)
      2. Available Funds (in the Commodities segment)
        • These can be found in the Account Window or Account screen of your trading platform.
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