When an account falls below the minimum margin requirement, IBKR has the right to, and generally will, liquidate a customer’s positions until the account complies with margin requirements. However, to allow a customer the ability to manage risk prior to a liquidation, we may allow “Soft Edge Margin (SEM)” during the trading day. From the start of the trading day until 15 minutes before the close of the trading day, Soft Edge Margin allows for an account's margin deficit to be within a specified percentage of the account's Net Liquidation Value, currently up to 10%. If the deficit exceeds 10% during the SEM period then a Liquidation will generally occur. When SEM ends 15 minutes before the close of the trading day, the full Maintenance margin requirement must be met. Please note that IBKR reserves the right to restrict Soft Edge access at any time and may eliminate Soft Edge Margin completely in times of heightened volatility. When SEM is not applicable, the account must meet 100% of maintenance margin.
Soft Edge Margin is applicable to Portfolio Margin accounts as well.
Additional Information
- Margin Education Center page of our website
- Key Margin Definitions IBKR Knowledge Base article