# IB margin borrowing SMA account with example



## keithphw (12 June 2017)

Hi,
I'm trying to figure out how Interactive Brokers' margin borrowing works, especially their SMA (special memorandum account). It's quite confusing and the example on their website doesn't show a forced liquidation (margin call):
http://ibkb.interactivebrokers.com/node/66
https://www.interactivebrokers.com/en/?f=/en/general/education/pdfnotes/WN-UnderstandingMargin.php
So I drafted my own example here and was wondering if anyone who knew about IB could comment on the examples 4-6 and where I might be wrong?
My main assumption is that available funds (E) equals the SMA (F).
Attached is the MS Excel file and a screen shot.
	

		
			
		

		
	



Thank you.
Best regards,
Keith


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## DB008 (26 June 2017)

This looks interesting.

I'm also looking at going IB markets. Can anyone else shed some light on this?


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## keithphw (29 June 2017)

Here is an interesting article about the dangers of prime brokerages, rehypothecation and margin lending:
https://www.euromoney.com/article/b1322h65c9hbf8/prime-brokerage-the-day-the-music-stopped
Interactive Brokers (IB) is a prime broker so its clients are likely to have similar problems if IB went bankrupt. IB on-lend their customers' securities. I think this explains how IB can lend at such low rates.


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## lanzoluz (29 June 2017)

I'm new to interactive-brokers and recently signed up for ASX market data ($25) in the hope of receiving per-market data, but to my surprise, I'm not getting what I'm paying for.....COULD SOMEONE kindly explain to me why they are not allowing per-market data or could it just me?


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## DaveDaGr8 (29 June 2017)

lanzoluz said:


> I'm new to interactive-brokers and recently signed up for ASX market data ($25) in the hope of receiving per-market data, but to my surprise, I'm not getting what I'm paying for.....COULD SOMEONE kindly explain to me why they are not allowing per-market data or could it just me?




per market ? what do you mean, what data did you expect to get that you're not getting 

You sign up to IB market data. This allows you to access realtime data for 100 stocks in that market. To get more, you pay another $30 per month to get another 100 stocks and so on up to around 10 i think.

The data is realtime but NOT tick data, you get updates a few times a second streamed as it changes.

It's not the best system around, but their API is the best i've found. I run a realtime bot and while their servers may drop in and out, their API is robust.


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## lanzoluz (29 June 2017)

Thanks a lot Dave, perhaps I didn't word my query the right way, but all I meant is the volume before market open and the open price before the market opens.....this is something i've seen with NABTRADE and E TRADE Australia.


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## traderxxx (29 June 2017)

Hi Lanzoluz,
i have had ib for quite a while but only follow the spi which also shows the pre market 
auction. 
i can post a sydney phone no. tomorrow which i use from time to time when 
im having trouble,  have always been happy with their help when i phone them.


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