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REDDIT
Does increasing NAV by buying more stock actually improve Margin Health/Excess Liquidity?
I'm currently trading on Interactive Brokers and trying to better understand the relationship between Net Liquidation Value and Maintenance Margin. If I have a high margin utilization (Maintenance Margin is close to NAV), does buying more "stable" blue-chip stocks actually help my account health because it increases my total assets, or does the additional maintenance requirement for those new shares just shrink my Excess Liquidity further? I’m trying to figure out the most effective way to widen the gap between my equity and the liquidation threshold without just depositing more cash. Would love to hear how others manage this balance, especially with IBKR’s real-time liquidation policy.