Stock Margin Requirements

Stocks Margin Overview

Europe Stocks Margin Requirements


For residents of the United States trading stocks:

  • Rules-based margin
  • Risk-based margin

The complete margin requirement details are listed in the sections below.



The following table shows stock margin requirements for initial (at the time of trade), maintenance (when holding positions), and Overnight Reg T (Regulatory End of Day Requirement) time periods.


Long Position

Margin
Initial Margin Margin requirements are determined by risk-based portfolio analysis models specified by each exchange. For details, visit the specific exchange site in question.
Maintenance Margin 25% * Stock Value
Reg T End of Day Margin 50% 1 * Stock Value
Cash or IRA Cash 100% * Stock Value

Short Positions

Margin
Initial Margin Same as Initial for long positions
Maintenance Margin Same as Initial for long positions
Reg T End of Day Margin Same as Reg T End of Day for long positions
Cash or IRA Cash N/A


Risk Margin Overview


What is risk based margining?

A risk based margin system evaluates your portfolio to set your margin requirements. The risk valuations of your positions are created using simulated market movements that anticipate possible outcomes. As a result, a more accurate margin model is created, allowing the investor to increase their leverage.


How are correlated risks offset?

Within a group of positions with the same underlying, 100% of the gain at any one valuation point is allowed to offset another positions loss at the same valuation point.

Example: An account holds a long stock position in stock ABC and a long put option contract in ABC. If a theoretical worst case scenario causes the underlying asset to drop 15%, then the loss that on the long stock position would be offset by the gain on the long put position.


What are my eligibility requirements?

Eligibility requirements vary according to the investor’s personal information, region, and exchange.


What positions are eligible?

All positions in margin equity securities (including foreign equity securities and options on foreign equity securities, listed options on an equity security or index of equity securities, security futures products, unlisted derivatives on an equity security or index of equity securities, warrants on an equity security or index of equity securities, broad-based index futures, and options on broad-based index futures.



Additional Europe Margin Requirements

For Residents of the United States:

Use the following links to view other margin requirements:

Options

Futures & FOPs

SSF - Single Stock Futures

Fixed Income

Mutual Funds


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Further Reading


To learn more about trading on margin, go to our Education Center:

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Disclosures
  1. For Leveraged ETFs, Minimum(50% * Leverage Factor, 100%)
  • All Margin accounts must have a minimum of USD 2,000 to trade.
  • Margin requirements quoted in US dollars may also be satisfied with a Non-US Dollar equivalent.
  • We have additional algorithms which increase the nominal margin for positions that represent a > 1% holding of an individual company's shares outstanding, with full margin required for concentrations of > = 5% of a company's shares outstanding. Investors should be prepared to meet the increased margin, where holdings are above 1% threshold.
  • Interactive Brokers Australia currently offers margin lending to all clients EXCEPT Self- managed Superannuation Fund account holders ("SMSF"). Click here for more information. For clients of Interactive Brokers Australia who are classified as retail, margin loans will be capped at AUD $50,000 (subject to change in IBKR Australia’s sole discretion). Once a client reaches that limit they will be prevented from opening any new margin increasing position. However, how much a client can borrow depends on a number of factors, including: the value of the money or assets contributed by the client as security; which financial products the client chooses to invest in, as we lend different amounts for different products under our risk-based model; and the maintenance margin requirement for the client’s portfolio. Once a client reaches their borrowing limit they will be prevented from opening any new margin increasing position. Closing or margin-reducing trades will be allowed. Refer to this link for information regarding margin accounts offered by IBKR Australia.
  • IBKR house margin requirements may be greater than rule-based margin.