Definition of indications
(1) 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.
(2) Initial Margin(IM) means the sum of the initial margin requirements for all positions currently held.
Under the futures account, some contracts differ in the initial margin charged intraday and overnight. Assuming 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.
(3) Overnight Margin means the sum of the maintenance margin of futures without discount.
(4) 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.
Under the futures account, Some contracts have different maintenance margins required during the day and overnight. Assuming 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, 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.
(5) Risk Ratio(RR); Higher risk ratio indicates higher risk; the RR value will only be available if your positions involves margin.
Account is on margin when Cash Balance is negative.
RR = MM/ELV;
Intraday RR = Intraday MM/NLV;
Overnight RR = Overnight MM/NLV
where MM = total maintenance margin for the positions in each segment.
TBSPL offers margin for certain securities and futures. It also offers intraday margin for some of the futures product, which allows customers to be on higher leverage during the trading hours. However, customers must keep their positions within the overnight allowable margin before the end of the trading day. The market trading hours of the securities are determined by the exchange in which the securities are traded. For futures markets, please refer to the bottom of the trade order for the overnight margin requirement time of the futures contract before confirming the trade.
Please click here to view the stock margin and short list.
Liquidation may occur when:
Securities Segment: EL = ELV – MM,
EL < 0, anytime during trading hours;
Futures Segment: Intraday EL = NLV – Intraday MM,
Intraday EL < 0, anytime during trading hours;
Overnight EL = NLV – Overnight MM,
Overnight EL < 0, end of trading day (End of day margin kick in time may vary between futures).
Please note that if you trade with alternative currency, the account will not be considered on margin if the total Cash Balance remains positive. However, margin interest will be charged on the amount of loan currency to you for these trading purposes.
*Alternative currency: trading a product with collateral that is based on a different currency.