Forex Margin
All assets in each currency are combined to determine a single net asset value in that currency. Separate margin requirement calculations are used when determining the amount of funds available for withdrawal and the amount of funds available for trading. When determining the amount of funds available for withdrawal, the margin for non-base currency assets is determined by taking the margin rate tables below times the net asset value in the currency. There is no margin for base currency assets.
IB Margin Requirements
The following margin rates generally apply to all customers. In various jurisdictions, local regulators require different and/or higher margin rates. If the local margin rates are higher than the IB margin rates, then the margin rates required by local regulators will apply. Otherwise, the IB margin rates listed below apply.
Separate margin requirements are used when determining the amount of funds available for withdrawal and the amount of funds available for trading. For more information, see Knowledge Base articles KB970 - Currency Margin Calculation and KB971 - Currency Margin Calculation (Withdrawals).
| Currency |
Initial Margin % (Leverage) |
Maintenance Margin (Leverage) 1 |
| AUD |
3% (33:1) |
2.5% (40:1) |
| CAD |
2.5% (40:1) |
2.5% (40:1) |
| CHF |
5% (20:1) |
3% (33:1) |
| CNH |
12% (8.3:1) |
10% (10:1) |
| CZK |
10% (10:1) |
10% (10:1) |
| DKK |
15% (6.7:1) |
15% (6.7:1) |
| EUR |
3% (33:1) |
3% (33:1) |
| GBP |
2.5% (40:1) |
2.5% (40:1) |
| HKD |
12% (8.3:1) |
10% (10:1) |
| HUF |
5% (20:1) |
5% (20:1) |
| ILS |
5% (20:1) |
5% (20:1) |
| JPY |
3% (33:1) |
2.5% (40:1) |
| KRW |
10% (10:1) |
10% (10:1) |
| MXN |
6% (16:1) |
5% (20:1) |
| NOK |
3.33% (30:1) |
3.33% (30:1) |
| NZD |
3.33% (30:1) |
3.33% (30:1) |
| PLN |
5% (20:1) |
5% (20:1) |
| RUB |
20% (5:1) |
15% (6.7:1) |
| SEK |
3.33% (30:1) |
3.33% (30:1) |
| SGD |
5% (20:1) |
5% (20:1) |
| USD |
2.5% (40:1) |
2.5% (40:1) |
| ZAR |
5% (20:1) |
5% (20:1) |
IB LLC Customers
The following margin rates are required by regulators for customers of IB LLC. They only apply if they are higher than the IB Margin Requirements listed above.
| Currency |
Maintenance Margin (Leverage) 1 |
| AUD |
3% (33:1) |
| CAD |
2% (50:1) |
| CHF |
5% (20:1) |
| CNH |
5% (20:1) |
| CZK |
5% (20:1) |
| DKK |
2% (50:1) |
| EUR |
2% (50:1) |
| GBP |
2% (50:1) |
| HKD |
5% (20:1) |
| HUF |
5% (20:1) |
| ILS |
5% (20:1) |
| JPY |
3% (33:1) |
| KRW |
5% (20:1) |
| MXN |
6% (16:1) |
| NOK |
3% (33:1) |
| NZD |
2% (50:1) |
| PLN |
5% (20:1) |
| RUB |
20% (5:1) |
| SEK |
3% (33:1) |
| SGD |
5% (20:1) |
| USD |
2% (50:1) |
IB Canada Customers
The following margin rates are required by regulators for customers of IB Canada. They only apply if they are higher than the IB Margin Requirements listed above.
| Currency |
Maintenance Margin (Leverage) 1 |
| AUD.CAD |
3% (33:1) |
| AUD.USD |
3% (33:1) |
| CHF.CAD |
3.7% (27:1) |
| DKK.CAD |
10% (10:1) |
| DKK.USD |
10% (10:1) |
| EUR.CAD |
3% (33:1) |
| EUR.USD |
3% (33:1) |
| GBP.CAD |
3% (33:1) |
| GBP.USD |
3% (33:1) |
| HKD.CAD |
10% (10:1) |
| HKD.USD |
10% (10:1) |
| ILS.CAD |
3% (33:1) |
| ILS.USD |
3% (33:1) |
| JPY.CAD |
3.8% (26:1) |
| MXN.CAD |
3% (33:1) |
| MXN.USD |
3% (33:1) |
| NOK.CAD |
3% (33:1) |
| NOK.USD |
3.8% (26:1) |
| NZD.CAD |
3% (33:1) |
| NZD.USD |
3.3% (30:1) |
| SEK.CAD |
3% (33:1) |
| SEK.USD |
3% (33:1) |
| SGD.CAD |
10% (10:1) |
| SGD.USD |
10% (10:1) |
| USD.CAD |
2.4% (41:1) |
IB Hong Kong Customers
The following margin rates are required by regulators for customers of IB Hong Kong. They only apply if they are higher than the IB Margin Requirements listed above.
| Currency |
Initial Margin in % (Leverage) |
Maintenance Margin (Leverage) 1 |
| All pairs |
5% (20:1) |
3% (33:1) |
Margin for Leveraged FX Positions
Margin for leveraged FX positions is calculated as follows:
- For each currency with a negative cash balance, offset with positive non-cash asset value in the same currency;
- For each currency with remaining positive non-cash asset value, use it to offset remaining negative cash balance in other currencies. Offset the currency with the highest margin rate first.
- Use total net liquidation value to offset remaining negative cash balances. Offset the currency with the highest margin rate first.
- If there are negative cash balances left, they are paired up with positive cash balances to calculate margin. The pairing algorithm previously developed for IB currency margin is used.
Examples
The following exchange rates and margin rates are used in the examples below. The rates are intended for illustrative purposed only and do not represent actual margin rates.
| Currency |
Exchange rate to USD |
IB Margin Rate |
NFA Margin Rate |
| HKD |
0.125 |
3% |
5% |
| USD |
1 |
2.5% |
N/A |
| EUR |
1.25 |
2.5% |
N/A |
| NZD |
0.8 |
10% |
N/A |
Example 1: Total Net Liquidation Value = 5,000.00 USD
| Currency |
Cash |
Non-Cash Asset Value |
FX Balance |
Leveraged FX Balance |
Leveraged FX Balance (USD) |
| HKD |
120.000 |
0 |
–120,000 |
–80,000 |
–10,000 |
| USD |
20,000 |
0 |
N/A |
N/A |
N/A |
Leveraged FX position is -80,000 HKD vs 10,000 USD.
Margin is 10,000 USD * 5% = 500 USD.
Example 2: Total Net Liquidation Value = 5,000.00 USD
| Currency |
Cash |
Non-Cash Asset Value |
FX Balance |
Leveraged FX Balance |
Leveraged FX Balance (USD) |
| HKD |
120.000 |
40,000 |
–80,000 |
–40,000 |
–5,000 |
| USD |
35,000 |
–20,000 |
N/A |
N/A |
0 |
Leveraged FX position is -40,000 HKD vs 5,000 USD.
Margin is 5,000 USD * 5% = 250 USD.
Example 3: Total Net Liquidation Value = 5,000.00 USD
| Currency |
Cash |
Non-Cash Asset Value |
FX Balance |
Leveraged FX Balance |
Leveraged FX Balance (USD) |
| HKD |
120.000 |
240,000 |
0 |
0 |
0 |
| USD |
–10,000 |
0 |
0 |
0 |
0 |
–120,000 HKD cash is offset by 120,000 HKD non-cash asset value. –10,000 USD cash is
offset by 80,000 HKD non-cash asset value. There is no leveraged FX position.
Margin = 0.
Example 4: Total Net Liquidation Value = 5,000.00 USD
| Currency |
Cash |
Non-Cash Asset Value |
FX Balance |
Leveraged FX Balance |
Leveraged FX Balance (USD) |
| HKD |
120.000 |
0 |
–120,000 |
–80,000 |
–10,000 |
| USD |
–10,000 |
0 |
–10,000 |
–10,000 |
–10,000 |
| EUR |
10,000 |
0 |
N/A |
N/A |
N/A |
| NZD |
21.875 |
0 |
N/A |
N/A |
N/A |
Short balances in USD and HKD are paired up with long balances in EUR and NZD to form
FX positions as follows:
- –10,000 USD vs 8,000 EUR. Margin is 10,000 USD * 2.5% = 250 USD
- –20,000 HKD vs 2,000 EUR. Margin is 2500 USD * 5% = 125 USD
- –60,000 HKD vs 9,375 NZD. Margin 7500 USD * 10% = 750 USD
Total Margin = 1125 USD. Note that net liquidation value is used once to offset HKD, but not used to offset USD.
