|Conditions||Account Risk Level||Description|
|When you haven't traded on margin or short selling.||safe||Depending on the holding positions, the fewer the holding positions are, the "safer" your account is.|
|middle||Depending on the leverage ratios, the fewer your leverage ratio is, the "safer" your account is.|
|MCM < ELV < IM||It is not possible to open new positions. Please pay careful attention to market changes in case of margin call in your account.|
|ELV < MCM||danger||The account has reached the condition for liquidation, please deposit cash or liquidate positions.|
The interest-charged amount is the amount you own 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 finance $2,000 to buy stocks:
1) After settlement on transaction date, the interest-charged amount is 0;
2) After settlement on day T+1, the interest-charged amount is 0;
3) After settlement on day T+2, the interest-charged amount is $2000.
That is, after financing, no interest will be generated until settlement completes on day T+2.
Following the example above, if you sell these stocks on day T+2, then:
1) After settlement on day T+2, the interest-charged amount is 2000;
2) After settlement on day T+3, the interest-charged amount is 2000;
3) After settlement on day T+4, the interest-charged amount is 0.
That is, after you close out the positions you bought through financing, interest will still be calculated before settlement completes. If you repay by depositing money, no interest will be calculated after funds arrive.
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.
The amount of cash that can be withdrawn from your account. The unsettled amount in your account will affect this value.
For example, US market adopts T+2 settlement cycle, which means that the settlement can only be completed on the second trading day after the transaction occurs.
1) Your account has $50,000 cash on the transaction date (T).
2) 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+1 is $20,000, and the amount to be settled on day T+2 is $10,000.
Then, in order to avoid settlement defaults in the next two trading days, your withdrawable cash today is 50,000 - 20,000 - 10,000 = $20,000.