IB Margin Requirements

[michaelr30 2]

I had an issue with using margin in IB today buying AMD.  I called them.  It turns out their margin requirement on AMD right now is 52%.  This means your leverage is less than 2:1.  I'm just posting this to inform others.  Before this I didn't realize they had different requirements on stocks besides really low float stocks.

[tiredandsleepy 1]

yeah, it's bullshit!!! they sometimes change it due to volatility was what a customer service rep told me when I called.

 

For a while, my fav stock to trade CGC was 100% margin requirement. Defeats the purpose of margin lol 

[Robert H 455]

Most--if not all--brokers will adjust margin requirements based on a stock's volatility. Remember that leverage entails you borrowing from the broker. They have to mitigate their risk as well.

[Jason H. 56]

If the broker margin is reduced I take it as a sign that I probably shouldn't buy it on margin anyway. Margin restrictions are a useful indicator to help manage risk.