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This post has been edited by HolyAssasin4444: Nov 4 2020, 02:51 PM

Hi sifus, niche question here not sure if anyone has tried it.
My family members want me to help manage investments for them. Is there a way to create separate IB accounts under their name ONLY, but I can login to do transactions with?

Not worried about login ip etc as I intend to manage the accounts the proper way (ie not having their passwords, and having a separate manager account to login instead)

Was looking at the family offices account / friends and family account. Anyone have experience with this?

This post has been edited by HolyAssasin4444: Jan 12 2021, 02:36 PM

Depends on your trading style.. For me OPRA is enough (Live stream of bid/ask/bid&ask size/volume), $1.5/month

If you need depth of book then go for L2 option feeds but they can get rather expensive if you're subscribing to all the exchanges. I'm not a daytrader so I don't find it useful.
They basically give the same data for OPRA, but for different prices. Let's say current bid/ask for option A is 1.00/1.01. OPRA gives you data for those prices but L2 feeds give you additional data for 0.99,0.98,0.97..... and 1.02,1.03,1.04...

You can find free live stock data easily from other sources online but option prices, just go for the subscription. PM me if you need help with which data package to sub as IBKR makes it really confusing for common investor

This post has been edited by HolyAssasin4444: Jan 23 2021, 11:43 AM

Iirc Yahoo Finance is also delayed data. For live data on stocks I use Tradingview, good enough for me but if you want live data on IBKR, subscribe to these packages:

NYSE (Network A) - 1.5/month
NYSE American......... (Network B) - 1.5/month
NASDAQ (Network C) - 1.5/month

For options, OPRA - 1.5/month

This post has been edited by HolyAssasin4444: Jan 23 2021, 11:48 AM

Is this only applicable for their multi-currency account? Cuz I think that feature no longer applicable for Malaysians

- Yep Nasdaq and NYSE mostly but those ETFs (ie SPY AGG etc) they list on ARCA. If you want to save money let's say you trade mainly stocks on nasdaq then can just subscribe to Network C and forego the others.
- Not sure about the fee waive. But fwiw, my fees for the data are normally charged on the next month (charged in Feb for Jan data) so maybe they waive

IBKR sent us an email. The change seems to be permanent. Applies to friends&family accounts and family offices too



This post has been edited by HolyAssasin4444: Jul 9 2021, 01:31 AM

Always been on IBKR. The email was received an hour ago

Yep. Just pay the normal commission fee (35c/100 share) plus minimal exchange fee

For you and for anyone else that invests in other countries besides Malaysia, can check up PWC's website regarding everything about taxes. Reviewed and updated frequently by professionals.

https://taxsummaries.pwc.com/quick-charts/w...-rates#anchor-M

You guys overcomplicating it... Buying Power is just Available Funds *4 ie how big of a position you can open right now

Reg T regs margins securities at 50%, which is used in SMA calculation. Intraday margins securities at 25%. So beware that holding 100k with 25k ELV will almost certainly get you margin called with a small downtick

Only need to care about 2 crucial numbers. ExLiq > 0 at all times, and SMA > 0 during closing.

Options have constant margin requirements. Futures usually have higher overnight margin requirements. Just check it here https://investors.interactivebrokers.com/en...004100808080101

Futures are typicaly risk margined ie the requirements change as volatility changes. For some CME futures, cross margining may be applied to reduce your total margin reqs

Extra info: I had quite a concentrated portfolio before I applied for PM, and they would margin my account using risk instead of rules. Having a few concentrated positions will increase your margin more than you expect with typical rules calculation

This post has been edited by HolyAssasin4444: Oct 7 2021, 05:47 PM

There's 3 different type of margins, Initial Margin (IM), Maintenance Margin (MM) and RegT Margin (RegT).

Opening any position requires a certain amount of IM and MM. For most US stocks, it's 25% (buying 10k stocks will require 2.5k IM & MM)
100k worth of stock = 25k IM MM. 200k worth of stock = 50k IM MM.
Available funds is ELV - IM. Available funds can be thought of how much remaining IM you're allowed to use before not being allowed to open another position.
Buying Power (BP) is just a fancy number calculated by Available Funds * 4 (ie a quick and easy way to know how big of a position you're allowed to open)

Example, For someone with 25k ELV and no positions, your available funds is 25k, that's why your buying power will display 100k (25k*4).
The reason why you're not allowed to buy 200k worth of stock is because that requires 50k of IM, which is more than your current ELV of 25k. Pretty much why I ignore looking at BP because it's just a secondary calculation of your available funds, which itself is a secondary calculation of IM.

Overnight positions (for stocks, ignore futures) have the same IM MM requirements, 25%.
Only difference is that for normal margin accounts, you're regulated by RegT rules. RegT states that all stocks may only be margined by 50% instead. This is where your RegT margin comes in.
However, RegT margin requirements are only checked once a day at market close. Which means that for any overnight positions, they'll be checked for RegT margin requirements.
That's why normally people say that you can only have half the amount of stock for overnight positions. Not because different requirements, but because there's an extra layer of margin requirement for you to obey. Once you upgrade to PM, this RegT rule will be removed, and you can just maintain the same amount for both intraday and overnight positions.

As someone that majored in derivatives, I hate how people simplify wheeling into such rigid rules and thinking it's easy money because it's not, and there are massive tradeoffs for having so much of theta decay. Won't get into it unless you're interested, but basically very low theta decay is not a problem, it's a feature. The real problem is that rolling any ITM options becomes really costly for you simply because of the bid/ask spread.
For the situation you mentioned (rolling the ITM put), I would recommend you to instead take assignment and sell calls. Due to put call parity, this is exactly the same thing but OTM calls have much tighter spreads, especially if they are near the money.

Example, I've got XYZ $100 Put, getting assigned cuz XYZ is $95 now.
Plan A: You want to roll to XYZ $100 Put for next month instead.
Plan B: Take assignment on XYZ, and immediately sell XYZ $100 Call for next month.
Both Plan A and B is synthetically the same thing, and there's no difference in doing either theoretically, but irl Plan B will be my choice because of the tighter bid/ask

Edit: I can provide you a basic excel worksheet I used in the past to find out how leveraged you can get, and how big of a drawdown till you get to RegT > ELV

This post has been edited by HolyAssasin4444: Oct 7 2021, 07:53 PM

Ps Ps just realised that might have came off as too arrogant. Got all the theory in my head but still losing money irl

I attached the Excel file, ugly but I think it does the job. Change the yellow cells, by adding how much ELV you have right now and how much percentage margin you intend to use. (50% = 1.5x your money worth of stock)

Then you can check the chart for the 'min(SMA)' line when it hits the x-axis. That would be how big of a loss you can take till you possibly kena margin call.

For example, if you use 1.33x margin, max loss is 50% of your portfolio before in danger of kena call. If 1.66x margin then max loss 20% kena called.

https://ufile.io/3q5xw81l

Leverage ratio is pretty much Gross Position Value/Net Liq.

Example, I long 100k SPY, with net liq = 80k. My leverage = 1.25
I long 100k SPY, short 60k QQQ, net liq = 80k. Leverage = (100+60)/80 = 2

Hmm not sure about that. My file I'm confident it's safe, but the website I just clicked on the first google results for file hosting service.

If you still want the file can just pm me I email to you, but I can just put the formulas here for ppl to make their own.

Market Val (left side) = ELV + Loan
1) Formula for the row labelled 1 is 'MarkVal'-('MarkVal'*-'losspercentage').
2) Formula for row labelled 2 is just row labelled 1 - loan value which is constant (eg in pic 148500 - 50000 = 98500)
3) Formula for row labelled 3 is the regT row, or just row labelled 1*0.5
4) Formula for row labelled 4 is min(SMA) row, row labelled 2 - row labelled 3

PM = Portfolio Margin. Can leverage more if got diversified portfolio. Can apply if you have >110k USD iirc.
ELV = Equity with Loan Value. You got the right idea, most important thing is to make sure your ExLiq and SMA >0 you'll be fine. The stuff I mentioned just to show how IBKR calculates your ExLiq and SMA
Assuming your option positions are short, it's probably due to the option value itself changing by alot, causing ExLiq to change along with it. If ExLiq constantly in danger zone, might wanna tone down your leverage abit. In fast moving markets you might not even have time to adjust positions before getting margin called

IBKR got 2 margin rules to obey, the Excess Liq that margins securities at 25%. This must be kept >0 at all times.
RegT rules margins securities at 50%, half the amount of ExLiq. This is why the ExLiq will always be higher than the 'min(SMA)'. But your SMA will be checked at every market close. If SMA <0 then you'll kena margin called.
That's why in my excel sheet I define margin called when the min(SMA) line <0. Even if ExLiq still positive, your SMA must be positive too if you're holding it thru market close (aka overnight)

I haven't fully mentioned how IBKR calculates SMA, because there's also a different method where they use your previous SMA to calculate today's SMA taking into account profits and cash movement. But that's hard for me to define mathematically and keep track in a simple excel sheet.
But not to worry because IBKR will take the bigger sum of that calculation, or ELV - RegT margin (this is the one the excel sheet calculates)
You'll almost always be positive SMA in your TWS at max loss 20%, as my excel sheet calculates the worst possible SMA. But to play it safe, I generally just follow the sheet's calculation.

Yup, ELV and Loan amount percentage. The ones in yellow.

Some of you may realize that Wise has added Multi Currency account for us Malaysians again (finally..)

I've experimented with deposits, here's what I have confirmed, and what I recommend to do for the cheapest route:

1) USD ACH is allowed. No need to go thru wire. Confirmed with transactions made yesterday and went thru.

2) If you need USD in IB, convert directly to USD in TW and send via ACH. For other currencies needed to buy stuff in IBKR, refer below for cheapest:

- EUR, AUD, GBP, SEK, DKK, CAD, NZD, SGD, CZK - convert MYR in TW and send directly to IBKR

- HUF - (>28.2K RM) convert MYR to EUR in TW, send to IBKR, convert to wanted currency in IBKR
(else) convert MYR in TW and send direct

- NOK - (>27.1K RM) convert MYR to EUR in TW, send to IBKR, convert to wanted currency in IBKR
(else) convert MYR in TW and send direct

- CHF - (>19.1K RM) convert MYR to EUR in TW, send to IBKR, convert to wanted currency in IBKR
(else) convert MYR in TW and send direct

- PLN - (>18.7K RM) convert MYR to EUR in TW, send to IBKR, convert to wanted currency in IBKR
(else) convert MYR in TW and send direct

- HKD - (>17.3K RM) convert MYR to EUR in TW, send to IBKR, convert to wanted currency in IBKR
(else) convert MYR in TW and send direct

- JPY - (>2.8K RM) convert MYR to EUR in TW, send to IBKR, convert to wanted currency in IBKR
(else) convert MYR in TW and send direct

- MXN - (>2K RM) convert MYR to EUR in TW, send to IBKR, convert to wanted currency in IBKR
(else) convert MYR in TW and send direct

- TRY, CNY, RUB, ZAR - convert MYR to EUR in TW, send to IBKR, convert to wanted currency in IBKR (converting directly if below 1k for TRY CNY and RUB is cheaper but I don't think it's useful info)

3) To spend MYR locally buy rice, convert into GBP in IBKR and send to TW. Then convert into MYR within TW, and withdraw to local bank account (not tested, but should work). Total fee is 2USD(IBKR) + 0.44% (TW) + 1RM (local account withdraw). This is the cheapest route as far as I'm aware of

Numbers above is based on Wise fees as of 16th Dec 2021, and USDMYR of 4.2

To compare the fees, if you should convert in TW and send directly, or convert to EUR in TW and then exchange to wanted currency in IBKR, you can compare using:
TW fees (wanted currency) vs TW fees (EUR) + 8.4 OR amount threshold = (9.93- fixed fee of wanted currency in TW)/(variable fee of wanted currency in TW - 0.0045)



This post has been edited by HolyAssasin4444: Dec 16 2021, 10:28 PM

Can't convert to MYR in IBKR. Ringgit is not traded there. If you want to convert to SGD and withdraw, can directly transfer to Wise SGD balance instead then convert to MYR. No need for CIMB anymore. Only reason why I suggested GBP is because the conversion fees is slightly lower than SGD (.44% vs .53%)

This post has been edited by HolyAssasin4444: Dec 17 2021, 12:03 AM

I'm just salivating at all those CDS data charts

Sifu, can ask where you got your source from for these data? Used to have access to Bloomberg Term in uni but can't justify paying 25kUSD when I'm being paid peanuts in MY.

Trying to build a data stream directly into IBKR with CDS data but not much luck with reliable data sources for it

This post has been edited by HolyAssasin4444: Jan 16 2023, 08:53 AM