We use the Interactive Brokers (IBKR) platform for trading. It is possible to process orders in the IBKR web application, however, our bulk rebalance orders can only be uploaded via the Trader Workstation (TWS) desktop application. We will therefore show you how to download and use this seemingly complex application. (more…)

To understand the results of your portfolio, we provide instructions on how to read the most used IBKR report, the Realized Summary Report. We will present the basic and at the same time the first table, Net Asset Value.

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We use the Interactive Brokers (IBKR) platform for trading. One of the first steps involved in creating an account is choosing the right type of account.

You can choose from a cash account (cash) [1]and a margin account [2]. Margin means that you borrow cash from the broker (IBKR), for which you then execute trades. You won’t even realize this at first glance, but the principles of account operation are based on it. So let’s look at the basic differences that exist between these accounts.

If you have the account maintained in Czech crowns, the first difference is that to purchase American shares (which is only possible in USD), you do not need a primary exchange for dollars in the margin account. In practice, this works by automatically borrowing dollars for which shares are subsequently bought or sold. At the end of the trade, you will receive a payment in dollars, which will be automatically converted back into your primary currency (CZK). Profits are held in dollars on the margin account. For a cash account, you must first “manually” change the crowns to dollars.

Shorting is not possible with a cash account, so you can only speculate on an increase in the value of shares. At the same time, the cash account does not allow you to use leverage, ie buy / sell shares for more cash than you have.

The advantage of a cash account is that you do not have to have a minimum balance, for a margin account it is necessary to have at least USD 2,000 [3] or the equivalent value converted into dollars. To open a cash account, you need to have less experience and lower income, compared to a margin account.

Therefore, if you plan to buy shares purely for long-term speculation on their growth, without using leverage, a cash account is sufficient for you. Short-selling is also possible on other platforms, such as eToro.

If you plan to use our strategies, we recommend opening a margin account, which is generally more professional, slightly more complex, also has higher requirements for opening [4], but is suitable for daily trading and allows the use of leverage.

Is something unclear to you or do we have an error in the information? Do not hesitate to contact us at software@ccfr.cz.

 

 

[1] www.interactivebrokers.co.uk/en/index.php?f=1588&p=acctypes3

[2] www.interactivebrokers.com/en/index.php?f=24862

[3] www.interactivebrokers.eu/en/index.php?f=1597&p=balance

[4] www.interactivebrokers.com/en/index.php?f=4945&p=tradingrequirements

If you use the Interactive Brokers for trading, beware of a change in the bank through which money transfers are processed.

Previously, IBKR used the Czech branch of HSBC Continental Europe to receive money from Czech users.
IBKR now uses the German branch of J.P.MORGAN AG. The bank processes payments in Czech crowns, however, the transfer of funds between states may be charged at banks. For example, at Raiffeisenbank a.s. the transfer is charged at a rate of 1% of the transaction volume, with a minimum of CZK 300 and a maximum of CZK 1,500. Only transfers between euro accounts are free of charge at RB.

Before transferring money, we strongly recommend verifying the situation with your bank.

Our company deals with software development, data and text analysis. However, the creation of models and software based on the principles of artificial intelligence is only the first step in commercially successful applications. (more…)