I have recently started to invest on portfolio margin at IBKR.
I have increased my margin amount from roughly 10k to 30k.
However, one thing that strikes me as odd is that my maintenance margin is still hovering around 15k and did not change even though I increased the margin loan amount by 3x.
Does anybody see similar behavior or have explanations for this?
The maintenance margin is based on the value of your securities and NOT on the margin loan you’ve taken.
I think it’s 30% of your securities, so in your case it means that you have around 50k in securities, a 30k loan is extremly risky, I hope you know what you are doing…
Thanks for the prompt reply.
I had a thinking error and you are 100% right that it depends on the value of the security.
The maintenance margin for VT is incredibly low though (10%-15%).
The net liquidation value of my assets is 135k currently and my leverage ratio is 1.2.
So I am trying to be cautious. Thanks for your advice. 