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.