outofthebox wrote: ↑Mon Apr 12, 2021 5:50 am
There is also one catch in it - if you try and maximize the loans with negative interest rates:
You will pay interest rate to IB for any cash balance
> 100k EUR (or any currency with negative interest rates) - the going rate at the moment is 0.885 %
LOL! Pay the bank to trust them with my money and use it and profit from it. We've so conditioned rightly or wrongly that it's so foreign to think more like the Swiss numbered banks accounts that just getting your monies back that used to involve physically getting there just to preserve cash was enough. But I guess there's gold, diamonds and Bitcoin for that today and Switzerland isn't all that it used to be.
Anyway, the 101 box trades went through and used up $85k ($800/box) in Buying Power and Net Liq Value went down $8-9k ($85/box). I didn't understand the difference at first, but I did this in the IRA account not the Margin account where the difference is more like $5000/box. My margin on the IRA with $222k Net Liq Value is now over $4M! Would this work in a real account? Anyway, I still don't know where my "loan cash" is sitting and how to get it out of the account without a margin call, and further complicated it by using an IRA account.
Please don't do this in real life. I suspect the simulator wasn't designed for this situation. FWIW, the simulator filled the one $392 limit order at $392.40 and expired the 100 market order from previous day. I don't understand why it is different from the other market order entered last weekend that did execute. But I re-entered it this morning and got 100 fills at 391.70.
[One more observation. In a 200k IRA account with $4M margin, one moment it showed $11k P/L Open (0.3%) (of the $4M I assume, cause it's more than 5% of 200k). Suddenly, it went near zero, then -$6k!, and fluctuating, now near zero. As the legs of the box are updating in real time, the real time position value fluxtuates along with it and I observed Net Liq Value $211k to 228k and I'm sure it went outside that at times) This must be how 20X leverage feels like, and I don't like it, even though the box is supposed to be zero or low risk.]