Cash Available is the funds available for withdrawal or for buying cash products (stocks, bonds, funds, options).
It is calculated from the following components:
| Cash balance | |
| Transactions not booked | |
| Value of stocks, ETFs, bonds, funds | The value (reduced by the haircut 'Not available as margin collateral') can be used to offset components that would otherwise reduce cash available (initial margin reserved, cost to close). |
| Value of options |
Negative option value reduces cash available as it is reserved for buying back the options. Positive option value can offset net margin losses, however Cash Available can never exceed initial margin available. |
| P/L of margin positions | Net margin losses reduce cash available. Net profits offset components that would otherwise reduce cash available (initial margin reserved, negative value of options, cost to close). |
| Cost to close |
Cost to close reduces cash available unless it is offset by positive P/L of margin positions or Value of stocks, ETFs, bonds, funds. In other words, if the cost to close a position is higher than the value of the position, the difference between cost to close and value is deducted from the Cash available. |
| Initial margin reserved | The part of initial margin reserved that is not offset by the items above reduces cash available. |
Cash available is shown in Account modules and in Trade Tickets. It is calculated for Accounts, not for Account Groups or All Accounts.
Grouped accounts
For cross-collateralized accounts, each account's Cash available considers any funds spent or reserved for margin in other accounts and not covered by its cash.
Cash available is calculated for each account with the methodology above, but it cannot exceed:
- Initial margin available on the account group level (clients enabled for margin products)
- Cash balance + Transactions not booked + negative Value of positions on the account group level (clients only enabled for cash products)
Account level margining
Cash available is calculated separately for each account, without any spillover between accounts.
Account Shield
Account shield amounts can reduce Cash available. This is to ensure any withdrawn or spent cash does not activate the account value shield.
Net Free Equity
Net Free Equity amount is different from Cash available.
What about my total cash?
Settled plus unsettled cash are shown in Account Details, labelled as ‘Cash’.
Examples
1. Portfolio with cash products (stocks, bonds, mutual funds)
Cash available is calculated as:
- Cash balance: $100,000
- Transactions not booked: -$9,971.28
- Cost to close is excluded as it's fully offset by Value of stocks, ETFs, bonds, funds
- Cash available = $100,000 - $9,971.28 = $90,028.72
2. Portfolio with margin products
Cash available is calculated as:
- Cash balance: $100,000
- Transactions not booked: -$100
- P/L of margin positions of $10,000 offsets Initial margin reserved
- Cost to close: -$100
- Initial margin reserved participates with -$14,390 (-$24,390 + $10,000 P/L of margin positions)
- Cash available = $100,000 - $100 - $100 - $14,390 = $85,410
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