If you are an institution, click below to learn more about our offerings for Proprietary Trading Groups and other Global Market Accounts.

Trading Configuration

Account Types - Cash

An IB Cash account requires the account holder to have enough cash in the account to cover the cost of the transaction plus commissions. No shorting is allowed. The account may trade in multiple currencies, but must have the settled cash balance to enter trades. Existing cash account holders can upgrade to a multi-currency cash account through Account Management.

Stocks/Warrants/ETFs

You must have enough cash in the account to cover the cost of the stock plus commissions. Shorting of stock is not allowed. Cash from the sale of stocks becomes available 3 business days after the trade date. When authorizing market, relative and VWAP orders, a 5% cash cushion is required to compensate for market movements.


Options

Full payment must be made for all call and put purchases. Cash accounts allow for limited purchase and sale of options as follows:

  • Covered call writing is allowed, but the underlying stock must be available and is then restricted.
  • Naked put writing is also allowed, but the funds must be available and then are restricted.

You must have stock cash trading permissions in order to have options cash trading permissions. Cash from the sale of options becomes available 1 business day after the trade date.


Futures

Futures day trading benefits are not supported. (50% of regular margin requirements during the day, on certain exchanges). Margin is determined on a real-time basis with immediate position liquidation if the minimum margin requirement is not met. Only cash may be used to meet variation margin requirements. Non-US futures options are available to US legal resident customers. You must have futures trading permissions in order to have options on futures trading permissions.

Forex

Cash from Forex transactions becomes available 2 business days following the trade date.


Bonds

Margin requirements are computed on a real-time basis, with immediate position liquidation if the minimum maintenance margin is not met. Purchase and sale proceeds are immediately recognized. Shorting of bonds is not allowed.


Funds

You must have enough cash in the account to cover the cost of the fund plus commissions. Shorting of funds is not allowed. Cash from the sale of funds becomes available 1 business day after the trade date. Mutual Funds are only available to US legal residents.


Single Stock Futures (SSFs)

This also includes the purchase and sale of stocks, exchange traded funds and narrow based index futures contracts on margin. Margin is determined on a real-time basis with immediate position liquidation if the minimum margin requirement is not met. In the US, SSFs may be cross margined with stocks and options (IRA accounts can only cross margin SSFs, not stocks and options).

To compare the characteristics of a Cash account with those of Reg T margin and Portfolio Margin accounts, see the Account Types comparison table.


Note:

The securities segment of a cash account is always rule-based. These rules are:

  • Long stock has no margin and no loan value.
  • You cannot short stock.