Stock Margin Requirements
Stocks Margin Overview
Europe Stocks Margin Requirements
For residents of Europe 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 Europe:
Use the following links to view other margin requirements:
You can change your location setting by clicking here
Disclosures
- 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.
- IBKR house margin requirements may be greater than rule-based margin.