Available funds(AEE) are used to determine whether new positions may be opened. Opening a position refers to trading activity such as buying long, subscription of non Tiger Vault funds or selling short. Please note that available funds is not the same as available cash. It is calculated using indicators such as total assets, options holdings market value, locked funds, and initial margin. When the available funds are greater than 0, it means the account may open new positions worth up to 4x the available funds.
Securities Segment：AEE = ELV - Initial Margin (IM) - locked EE
Futures Segment：AEE = NLV - IM - locked EE
ELV = Equity with Loan Value, summation of the assets available in securities and Funds segment;
*For cash accounts, ELV = security segment cash balance + fund segment cash balance
*For margin accounts, ELV = security segment cash balance + fund segment cash balance + total market value of securities - total market value of options + total market value of fund
NLV = Net Liquidity Value, summation of the assets available in futures segment, Net Liquidation Value = Net Liquidation Cash
The formulas are all formulas after the "unified buying power". If your account's buying power is not unified, the calculation of funds under each account is relatively independent.
Frozen funds refer to unavailable funds in the account.
They may occur due to the following situations:
Funds withheld for a pending order, including commission, taxes, and fees generated by the order
Withdrawal request
IPO subscription
Non Tiger Vault Fund redemption
Buying power is the maximum value of new securities that may be purchased on the account.
Under the margin account , the maximum buying power is 4x the available funds, assuming a security has a margin requirement of 25%. However, each security has different margin requirements, and the buying power for each security should be calculated based on that security’s actual margin requirement, for details, please refer to the "Leverage" calculation method.
Margin account：maximum buying power=4*Available Funds
Cash account：buying power=Available Funds
Leverage is an important indicator for the degree of risk in an account.
Leverage = sum of absolute value of market value of current security and fund positions / total assets of security and fund.
Note 1. The maximum leverage allowed in a margin account is 4x.
Note 2. Considering factors such as historical volatility, liquidity, and risk, and not every stock can be bought with 4 times leverage. Generally, the margin ratio ranges from 25% to 100% for long trading. Stocks with a margin ratio equal to 25% can be understood as 4 times leverage buying, and stocks with a margin ratio equal to 100% can be understood as 0 times leverage buying, that is, all stocks are bought with cash. It is important to note that the short margin may be greater than 100%.
Note 3. The margin requirements for each individual stock can be found on the stock’s detail page by clicking on the yellow $ icon.
Excess liquidity(EL) indicates the potential liquidation risk of the account. A lower current excess liquidity indicates higher liquidation risk. When it is lower than 0, the account will be force liquidated.
Securities Segment: EL = ELV - MM
Futures Segment: Intraday EL = NLV – Intraday MM
Overnight EL = NLV – Overnight MM
Forced liquidations are conducted with market orders and any/all positions in your account may be liquidated. Please take note of the indicators related to excess liquidity.
Initial Margin(IM) means the sum of the initial margin requirements for all positions currently held.
Some contracts differ in the initial margin charged intraday and overnight. Assume that the initial margin for the contract GC1808 intraday and overnight is $3,500 and $5,000, respectively. When the position is held overnight (turned overnight), the initial margin for each contract will increase by $1,500. Conversely, when the positions are held intraday from overnight, the initial margin for each contract will be released by $1,500.
Overnight Margin means the sum of the maintenance margin of futures without discount.
Maintenance Margin(MM) means the sum of the maintenance margin requirements for all positions currently held. When the equity with loan value is lower than the maintenance margin, the account is at risk for forced liquidation.
Some contracts have different maintenance margins required during the day and overnight. Assume that the maintenance margin for the contract GC1808 during the day and overnight is $2,800 and $4,000, respectively, assuming that only one position is held and the position is held overnight (intraday to overnight) If the current equity is less than 4,000 US dollars, there will be a risk of force liquidation. When converted to intraday, there is a risk of force liquidation when the current equity is less than $2,800.