When trading with Tiger Brokers, it’s important to understand the different types of withdrawable amounts available in your account. These amounts determine how much cash you can withdraw at any given time. Let’s break down what “Withdrawable Cash” and “Max Withdrawable (with Loan)” mean and how they work.
1) Withdrawable Cash
The Withdrawable Cash is the amount of cash in your account that you can freely withdraw at any time. This is essentially the cash balance available in your account that is not tied to any ongoing trades, margin loans, or other financial obligations. It represents the money that is immediately accessible for withdrawal.
For example, if you have funds in your account from previous deposits or successful trades that are not being used for active investments or margin financing, these funds make up your Withdrawable Cash.
2) Max Withdrawable (with Loan)
Max Withdrawable (with Loan) refers to the total amount you can withdraw when considering both your Withdrawable Cash and any financing options available in your account. This is the maximum amount you can take out from your account, including any loaned funds.
The formula for this is: Max Withdrawable = Withdrawable Cash + Financing Amount provided by other assets in your account.
So, if you have a margin account with financing options, the financing amount will be added to your Withdrawable Cash to create the total Max Withdrawable.
For instance, if your Withdrawable Cash is $1,000 and your margin financing provides an additional $2,000, your Max Withdrawable would be $3,000. This allows you to access more funds, but remember, the financing portion comes with an interest-bearing condition.
Important Note: Interest on Financing
If you choose to withdraw funds that are part of the Max Withdrawable with financing, be aware that the financing portion of the withdrawal will be interest-bearing. This means that the borrowed funds from your margin loan will accumulate interest, so it’s essential to manage your margin balance and withdrawals carefully to avoid unnecessary interest charges.
How to Manage Your Withdrawals
Withdrawable Cash: Feel free to withdraw this amount without any conditions.
Max Withdrawable: You can withdraw the full amount, but the financing part will incur interest, so only withdraw the financing portion if necessary.
Keep an Eye on Your Loan: If you’re using margin financing, make sure to monitor the interest rate and the amount borrowed to avoid unwanted surprises.
Conclusion
Understanding the difference between Withdrawable Cash and Max Withdrawable (with Loan) is crucial when managing your account on Tiger Brokers, a broker online. The Withdrawable Cash is your easily accessible funds, while the Max Withdrawable includes both your available cash and any financing options. However, be mindful that any borrowed funds from margin loans will incur interest, so plan your withdrawals accordingly to avoid unnecessary costs.
