1. Risk control status
Account risk control status | illustrate |
Safety: | no short positions, no financing |
Risks | including the following two situations - Use financing, but with lower leverage - Hold options that are about to expire, and will not generate short positions in stocks after the option is exercised |
Warning | insufficient remaining liquidity |
Danger | including the following two scenarios -Consolidated Net Assets < Maintenance Margin Requirement -After the expiry option is exercised, the comprehensive net assets will be lower than the maintenance margin |
2. Market value of securities
The sum of the market value of the stocks and securities derivatives in your account's position.
3. Cash
The total amount of cash in your account, including your own funds and funds from the short sale of shares. A negative cash balance indicates that you have a debt on that account.
For example, if you have $100,000 in cash in your account and you sell short stocks valued at $50,000, the total cash in your account will be$100,000 + $50,000 = $150,000.
4. Long market capitalization
The sum of the market value of your account's long positions in stocks and securities derivatives.
5. Short market value
The total market value of short stocks and short securities derivatives in your account, it is negative.
6. Maximum Buying Power
Maximum buying power represents the amount that can be used in your account when buying securities with the smallest margin ratio. The margin ratio for different securities may vary.
7. Short-selling Buying Power
Represents the current account and is the maximum amount that can be sold short. The margin ratio for different securities may vary.
8. Margin calls
This value represents the minimum amount of cash you need to deposit into your account (i.e. make a margin deposit) when your account triggers a "Margin Call" status. After a sufficient margin has been paid, your account will be restored to a "safe" status, avoiding the risk of being liquidated.
9. Margin Requirements
Margin requirement = Sum of each positions margin requirement, margin requirement is market value of the stock held * margin ratio of the stock, the margin ratio of stocks generally ranges from 50% to 100%.
10. Interest Charged Amount
The interest-charged amount is the amount you owe after daily settlement. The amount may fluctuate due to deposits, withdrawals, positions change, etc. Please refer to your statement
for more details.
For example, if you borrow $2,000 to buy a stock on day T, then.
After the T-day settlement, the interest-bearing amount will be 0.
After the T+1 day settlement, the interest-bearing amount will be 2000.
When you use margin, no interest will accrue on T day, and interest will start to accrue after the settlement on T+1 day.
If you sell the stocks you bought on T+1, then.
After the T+1 day's settlement, the interest-bearing amount will be 2000.
After settlement on T+2, the interest-bearing amount will be 2000.
After settlement on T+3, the interest-bearing amount will be 0.
After you close your positions of this stock, the interest will still be calculated until the settlement is completed. If you repay the negative balance by depositing cash on the same day, there will be no interest generated on that day.
Note: While you have a short position, it is possible that you still have an interest-bearing amount when your cash is not negative.
The reason is that when you sell short, to ensure that your account has sufficient capacity to return the borrowed shares from the stock lender, there will be frozen funds valued at 105% of the short positions. The frozen funds will not be included in the cash buying power and if your account does not have enough funds as collateral, your account will be charged interest.
Example: Your account has a net worth of 9,000 USD with 4,000 USD in cash, 10,000 USD in long positions, and 5,000 USD in short positions. Just as above, the frozen funds of the short sale will be USD 5,250. Now your account only has 4000 USD, so there will be a negative balance of 1250 USD, and it will be charged interest.
11. Funds on Hold
11.1 Pending Orders: The funds are frozen by pending orders.
11.2 Fee Withholding: Unsettled withholding transaction fees, interest on margin and securities lending, etc.
11.3 IPO Subscription: The funds are frozen for IPO subscription before subscription deduction.
Please notethat the Funds on Hold will take up a portion of your account's purchasing power.
12. Withdrawable Amount
The amount of cash that can be withdrawn from your account. The unsettled amount in your account will affect this value.
For example, the US stock adopts the T+1 settlement cycle, which means that the settlement can only be completed on the first trading day after the transaction occurs.
Assuming that:
Your account has $50,000 cash on the transaction date (T).
You bought $20,000 of stocks on day T-1 and $10,000 of stocks on day T. The amount to be settled on day T is $20,000, and the amount to be settled on day T+1 is $10,000.
Then, to avoid settlement defaults in the next two trading days, your withdrawable cash today is 50,000 - 20,000 - 10,000 = $20,000.
13. Maximum withdrawable
The maximum amount of funds that can currently be withdrawn from an account, including the partially financing amount and the unsettled amount.
14. Remaining Liquidity
It indicates the amount by which your account equity can fall before triggering the "Margin Call" status, which is equal to your net liquidation value minus the maintenance margin. When your remaining liquidity is lower than 0, Moomoo Financial Inc. reserves the right to force liquidation of your positions at any time based on the market conditions.
15. Leverage
Leverage = Sum of Absolute Values of Market Value of Open Positions / Net Liquidation Value. It is an important indicator to measure the risks in your account. The higher the leverage, the higher your financing ratio and the risks in your account.
