I've read the margin documentations on IB but am not sure given the following scenarios. I have a reg-t margin account trading stocks/etfs.
I do weekly re-balancing of a portfolio of 1-10 securities. I am to be invested at all times but my portfolio will change each week. When I start trading, everything will be ok as I have all cash. But when re-balancing comes along, I must sell all my security holdings and invest in new ones the following week. Since its t+3, I wont get cash settlement until the third day after I've sold my holdings. But given my need to re-balance on the same day I sell all my securities, I will need to use margin to purchase new holdings, is this correct? If so, after 3 days, when my cash does come back in, what happens? Is it still a position on margin?
I have a concentrated position on that takes the entire value of my portfolio. No cash left, just 1 big position. (risky, i know) In such scenario, since the position is financed by my cash, no margin comes in to play, correct? What happens when I decide to increase my position using margin? Under the Reg-T margin rules, any position that is traded on margin requires the trader to pay 50% of the value, but I don't have anymore cash, will the new trade be denied?
Thanks so much, anything will help.