Glossary

ACH Held Funds can take 5-7 business days (or sometimes longer) to be debited from your bank account. A portion of your ACH deposit is released into your buying power until the funds have fully settled.

Brokerage Equity represents the value of your account if you were to pay off any outstanding margin loans and close 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.

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 uncleared deposits, unsettled trade proceeds, cash on hold for open orders, margin requirements, or unvested rewards.

The total cash balance in your account is displayed in the cash field and updated in real time.

Average cost is the average purchase price of a security, calculated by dividing the total cost of your shares by the number of shares held.

Selling (closing) a position does not change the average cost of your prior purchases.

Funds in Transit are funds that are currently being processed, such as pending deposits, withdrawals, fees, and rewards.

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.

Margin Equity represents the value of the account if you were to pay off any outstanding margin loans and close 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.

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.

The Margin Loan Balance is the amount of money you have borrowed. Margin interest is calculated on the amount of your margin loan.

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.

Net Equity represents the value of your brokerage account if you were to pay off any outstanding margin loans and close 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.

Open Orders refers to the total amount of all open orders in your account.

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 have higher maintenance requirements, which are displayed inside your account. For these securities, the full Overnight BP will not be available.

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.

The RIA Value is the market value of any RIA portfolios you may hold in your account.

The Securities Value is calculated by taking the long market value minus any short market value.

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 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.

Uncleared Funds are deposits into your account that have not yet cleared. ACH deposits typically take 5-7 business days (or occasionally more) to clear. Once the deposit clears, it will show up in your Cash for Withdrawal balance.

The proceeds from selling stocks are called Unsettled Funds, as trades don’t settle immediately. Unsettled Funds are not available for withdrawal. Stocks and options settle on the trade date + 1 day. Upon settlement, the funds become available for withdrawal.

A reward that has been in your account for less than 60 days is considered an Unvested Reward and may not be withdrawn. After 60 days, rewards are vested and may be withdrawn.