Risk Management
Customer should understand the risks involve in margin and other derivatives prior to any margin trading.
Margins are offered and maintained separately for the Securities and Futures segments of the trading account. TBSPL will not do intra-account fund transfer automatically to fulfil any margin requirements. All intra-account fund transfers shall be initiated by Customer through Tiger Trade APP.
Definition of indications
(1) Total Assets = Total asset of account including both securities and futures segment;
(2) ELV = Equity with Loan Value, summation of the assets available in securities segment;
(3) NLV = Net Liquidity Value, summation of the assets available in futures segment;
(4) EE = Excess Equity, which is available funds – locked funds (including any fees or interests that are payable)
To open a new position, EE must be > 0,
Securities Segment: EE = ELV – IM;
Futures Segment: EE = NLV – IM;
where IM = Initial Margin.
(5) EL = Excess Liquidity; liquidation may occur when EL < 0;
(6) RR = Risk Ratio; Higher risk ratio indicates Higher risk; the RR value will only be available if your positions involves margin.
Securities Segment:
Account is on margin when Cash Balance is negative.
Intraday RR = Intraday MM/ELV;
Overnight RR = Overnight MM/ELV
Futures Segment:
Intraday RR = Intraday MM/NLV;
Overnight RR = Overnight MM/NLV
where MM = total maintenance margin for the positions in each segment.
Margin
TBSPL offers intraday margin for certain securities and futures, 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
Liquidation may occur when:
Securities Segment: Intraday EL = ELV – Intraday MM,
Intraday EL < 0, anytime during trading hours;
Overnight EL = ELV – Overnight MM,
Overnight EL < 0, end of trading day (liquidation may start 15 minutes before the trading day ends).
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.