Glossary
Net Equity
The Net Equity number represents the value of your brokerage account if you paid off any outstanding margin loan and closed out all long, short, and option positions. Net equity also includes the value of any RIA portfolios or other assets you may hold in your account.
Brokerage Equity
The Brokerage Equity number represents the value of your account if you paid off any outstanding margin loan and closed out all long and short positions as well as option positions. Brokerage Equity does not include the value of any RIA portfolios or other assets you may hold in your account.
Margin Equity
The Margin Equity number represents the value of the account if you paid off any outstanding margin loan and closed out long and short positions. Margin equity does not include the value of option positions, RIA portfolios, or other assets you may hold in your account.
Overnight BP
Overnight Buying Power (Overnight BP) is the maximum value of securities held at a maintenance requirement of 50% that you can purchase on margin and hold overnight without depositing additional funds. Some securities are held at requirements higher than 50% and the maintenance requirements are displayed inside the app. For these securities, the full Overnight BP will not be available.
Day Trade BP
Day Trade Buying Power (Day Trade BP) refers to the buying power available in your account that can be used specifically to place day trades. Day Trade Buying Power is calculated every day prior to the market open. The calculation is 4 times your margin excess based on the previous day’s closing prices. Some securities may have higher day trading requirements than others. If you exceed your Day Trade Buying Power a day trade call will be issued. Day trade calls can only be met by depositing funds.
Cash
The total cash balance in your account is displayed in the cash field and updated in real time.
Margin Loan Balance
The Margin Loan Balance is the amount of money you have borrowed. Margin interest is calculated on the amount of your margin loan.
SMA
A Special Memorandum Account (SMA) is an account that records how much extra margin excess your account has based on the Regulation T margin rules. SMA is one of the figures that is used to calculate overnight buying power. When the value of your brokerage account appreciates, you accrue SMA. SMA is not deducted due to depreciation of your positions. Opening new positions and withdrawing funds will reduce your SMA.
Margin Excess
Margin Excess refers to the funds in your margin trading account that are available for trading. Margin Excess is one of the numbers used to calculate your overnight buying power. Margin Excess is calculated by subtracting the margin maintenance requirements from your margin equity.
Maintenance Requirement
The Maintenance Requirement is the amount held as collateral for your margin loan against a position in your margin account. Regulation T sets an initial Maintenance Requirement of 50% on most equities. FINRA sets a Maintenance Requirement of 25% on most equities.
Pending Interest Charges
Pending Interest Charges are the amount of margin interest or short interest charges that have accrued but have not yet been charged to your account.
Open Orders
Open Orders refers to the total amount of all open orders in your account.
Unsettled Funds
The proceeds from selling stocks are called Unsettled Funds, as trades don’t settle immediately. Unsettled Funds are not available for withdrawal. Different security types have different settlement timeframes. Stocks settle on the trade date + 2 days and options settle on the trade date + 1 day. Upon settlement, the funds become available for withdrawal.
Uncleared Funds
Uncleared Funds are deposits into your account that have not yet cleared. ACH deposits take anywhere from 5-7 business days (or occasionally more) to clear. Once the deposit clears it will show up in your Cash for Withdrawal balance.
Unvested Rewards
A reward that has been in your account for less than 180 days is considered an Unvested Reward and may not be withdrawn. After 180 days, rewards are vested and may be withdrawn.
ACH Held Funds
It can take 5-7 business days (or sometimes longer) for ACH funds to be debited from your bank account. We release a portion of your ACH deposit into your buying power until the funds have fully settled.
Max Withdrawal Amount
The Max Withdrawal Amount is the total amount of funds you can borrow and withdraw from your brokerage account. Withdrawals that exceed the cash balance in the account will result in an increase in the margin debit balance in the account.
Cash for Withdrawal
Cash for Withdrawal is the amount of cash available for immediate withdrawal. This amount is calculated by taking the total cash in your account and subtracting funds on hold for any reason, such as deposits that haven’t cleared, proceeds from unsettled trades, cash on hold for open orders, margin requirements, or rewards that haven’t vested.
Securities Value
The Securities Value is calculated by taking the long market value minus any short market value.
RIA Value
The RIA Value is the market value of any RIA portfolios you may hold in your account.
Funds in Transit
Funds in Transit are funds that are currently being processed, such as pending deposits, withdrawals, fees, and rewards.
Day Trades Remaining
The app provides the number of day trades remaining that you can execute before your account will be considered a Pattern Day Trader account. A minimum of $25,000 in brokerage equity is required in Pattern Day Trader accounts to place day trades without incurring a restriction. If you exceed the number of day trades remaining, and your account equity is below $25,000, your account will be restricted. For example, (1,1,3,3,3) illustrates that the number of day trades permissible today is one, the number of day trades permissible for tomorrow is also one, the number of day trades permissible for the day after tomorrow is three, and so on, and so forth. Please note that each day refers to an open market trading day.
Pattern Day Trader
A customer’s margin account is coded as a Pattern Day Trader account when 4 day trades are completed within a 5 rolling business day period. A day trade is an opening and closing transaction on the same security, on the same day. Patter Day Trader accounts must have a minimum of $25,000 brokerage equity in order to place day trades.
Day Trade
A Day Trade is an opening and closing transaction on the same security, on the same day. Examples include buying and then selling, or selling short and then buying to close, the same security on the same day. Exceptions that are not considered day trades include holding a long security position overnight and selling it the next day prior to any new purchase of the same security. Also, holding a short security position overnight and closing the position the next day prior to any new short sale of the same security is not considered a day trade.