My understanding of Regulation T is that you can borrow up to 50% of the purchase price of the securities with the remaining balance as cash. If that's the case, why does Interactive Brokers set the initial margin for most securities at 25%? I could then control $4 of equity for every $1 in cash. If i'm not mistaken, that 25% rate applies to positions held overnight too. In my head I would have thought that the maintenance margin would be 25% intraday but you would have to put up 50% by market close. What am I missing here?
Submitted June 25, 2017 at 12:34AM by bdavidson1030 http://ift.tt/2t4Nh5u
