Margin - Interactive Brokers
Interactive Brokers offers margin of 1:4 at 1.6% interest rate. Seems like there should be some low risk method to make money on the spread.
Does anyone do this?
Sounds like you can invest $100K and borrow $300k. Then if you can earn 2.6% you make $3K on your $100K of cash + $2.6K from the $100K. So your total return would be around 5.6% on your investment.
Any thoughts on investments that would be suitable to make 2.6% without exposing to too much risk in this market?