Non base currency futures with IB's Universal Account
Posted: Thu Mar 15, 2012 9:37 am
Hi guys. I want to get detailed information about how margin works when you use IB's Universal Account for trading non base currency futures. I thought some of you know about it and can share pointers to/or information about it, cause I wasn't able to find much on my own.
I was not able to find detailed information at IB's site, and I've been talking with people at IB for a couple of days but I still couldn't find a good answer.
Thanks very much for your help, Cord
PS: Some of my doubts are:
I was not able to find detailed information at IB's site, and I've been talking with people at IB for a couple of days but I still couldn't find a good answer.
Thanks very much for your help, Cord
PS: Some of my doubts are:
- 1 Is the loan collateralized by your base currency cash (I guess so)
2 Is there an interest rate paid on the base currency loans that offsets the interest paid for the loan?
3 How do you determine the interest rate charged?
4 Does a 'foreign currency' margin account exist and is it seggregated on my name?
5 Is the currency just on the margin, not the full position (I guess so)?
6 P&L adds up to the foreign currency account, and thus is part of the fx risk, or is there any kind of transfer of the values besides the margin requirements?