QUOTE(DiamondRuby @ Feb 5 2020, 03:26 PM)
Hello, Sifu
Need some advice on the margin requirement@IBKR.
As I saw, if I send money to IBKR(in SGD) I dont convert to USD.
Rephase: Means, I keep my cash in SGD, but trade with the (visual) amount in USD, (the column in Total in USD)
I compare against buying power & the Inital margin also not much changes(Total in USD).
Hence, Why we want to convert ? Keep SGD also good mah, can save X-rate commision fees ...
please advice if IBKR occurs hidden charges, if I trade with SGD?
when you buy usd denominated products, ibkr will create a usd loan for you...you will pay interests on it
if sgd drops in value, your available margin may become insufficient especially if you try to max out buying power, and you have to top up asap... if your assets drop in value as well, way below maintenance margin...ibkr will liquidate some of your positions
everything is transparent... no hidden charges
only reason to keep sgd whilst trading usd... sgd strengthening against usd and you are good short term trader...quick contra profit can pay off interest
This post has been edited by dwRK: Feb 5 2020, 10:23 PM