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I want to know the exact buying power with margin for “TQQQ” to avoid putting Invalid Order and rejected by InteractiveBrokers.
I want to know what's maximum margin available with Live trading at InteractiveBrokers with margin account and have been tested, but I couldn't figure it out clearly.
I got the following:
buyingPower= 1302.79, cash= 33.00, holding= 2539.58, Total Value= 2572.58
Got the buying power with: _buyingPower = self.Portfolio.GetBuyingPower(self.myStock.symbol)|
I put order with the quantity manually calculated with 95% (lowering -0.05% up to 75%) of the buying power and got order rejected with the following error:
YOUR ORDER IS NOT ACCEPTED. IN ORDER TO OBTAIN THE DESIRED POSITION YOUR EQUITY WITH LOAN VALUE [2569.14 USD] MUST EXCEED THE INITIAL MARGIN [2811.21 USD]. Origin: [Id=46] IBPlaceOrder: TQQQ (STK TQQQ USD Smart NASDAQ 0 )
Then, I lowered the quantity with 55% of the buying power, it worked. Log is:
2023-05-17 15:00:02 :buyingPower= 1306.66, cash= 33.00, holding= 2547.32, Total Value= 2580.322023-05-17 15:00:02 :TQQQ, Filled , Qty=24.0, Price= 29.64, Total= 711.30, TotalPortfolioValue= 2578.90, TotalHoldingsValue= 3258.20, TotalMarginUsed = 1629.10, TotalFees=1.0, Cash=-679.30, UnsettledCash= 0.00 2023-05-17 15:02:00 :buyingPower= 951.95, cash=-679.30, holding= 3262.49, Total Value= 2583.19
Louis Szeto
Hi Terra
Leveraged ETFs are not using standard rates, you'll have to refer to IB. Usually it would be like a normal stock, but divided by the leverage multiple.
Best
Louis
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
David E
Leveraged ETFs like TQQQ use 75% margin. So If you buy $100,000 of TQQQ it will require $75,000 of margin. QQQ on the other hand uses only 25% so the same 100k would only use $25k margin.
Yuri Lopukhov
Hmm, then what is the point of using them? You can just get 3x of QQQ for the same margin amount? Just curious, leveraged ETFs are not available to me (I think they are US-only?)…
David E
Yes I agree. Once I found that out a few years ago I stopped. They have much more decay due to fees and how they are set up too. Anyone who understands this likely doesn’t use them anymore. I use it in one algo because I use QQQ in the algo as well with a different strategy and it would be more confusing to try to figure out how much of the block of equity I own was from one strategy compared to the other.
David E
If you use interactive brokers you can always set up a trade and then there is a review button that will tell you exactly your current margin, the initial and maintenance margin and how it will affect your margin, without actually doing a trade. It’s nice to see what the margin for futures and equities are. Some equities vary also. Like Vix ETFs will vary a lot. Sometimes they require 25% margin, sometimes 100%
Terra Lim
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
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