A margin call is a demand for additional margin. When a margin account's net assets or risk level no longer meet the maintenance margin requirement, a user may need to: add cash or eligible assets; repay part of the financing; or reduce existing positions. Important: This material is provided for general educational and informational purposes only and does not constitute financial product advice, investment advice, or a recommendation. Margin lending, short selling, and other leveraged trading strategies involve significant risks and may not be suitable for all investors. Losses may exceed your initial investment. Before investing, consider whether the product is appropriate for your objectives, financial situation and needs, and read the relevant PDS and risk disclosures. First, learn the

Some users notice: I bought USD 10,000 of two different stocks — why did one tie up less margin than the other? Because securities differ in risk, volatility and liquidity, the applicable margin requirements may differ too. Important: This material is provided for general educational and informational purposes only and does not constitute financial product advice, investment advice, or a recommendation. Margin lending, short selling, and other leveraged trading strategies involve significant risks and may not be suitable for all investors. Losses may exceed your initial investment. Before investing, consider whether the product is appropriate for your objectives, financial situation and needs, and read the relevant PDS and risk disclosures. What range do margin rates fall in? Taking histor

Many Australian investors hold mainly AUD in their accounts, while the names they follow — NVIDIA, Tesla, Apple and others — trade in USD. In a cash account, a user generally needs to hold cash in the relevant currency first.A margin account supports multi-currency financing. Tiger currently supports AUD, USD, HKD and CNH financing; actual capacity and scope are subject to your account page and approval outcome. Important: This material is provided for general educational and informational purposes only and does not constitute financial product advice, investment advice, or a recommendation. Margin lending, short selling, and other leveraged trading strategies involve significant risks and may not be suitable for all investors. Losses may exceed your initial investment. Before investing, c

An ordinary stock trade usually goes: Buy first, then sell after the price rises. That is going long. Short selling reverses the order: Borrow the security and sell it first, then buy it back later and return it. Important: This material is provided for general educational and informational purposes only and does not constitute financial product advice, investment advice, or a recommendation. Margin lending, short selling, and other leveraged trading strategies involve significant risks and may not be suitable for all investors. Losses may exceed your initial investment. Before investing, consider whether the product is appropriate for your objectives, financial situation and needs, and read the relevant PDS and risk disclosures. A simple example Suppose a stock currently trades at USD 100

When users open the margin account page, many see a "margin limit" or "available buying power" and immediately wonder: Have I already borrowed money? Will this limit start accruing interest straight away? The answer: a margin limit is not the same as money borrowed. Your margin limit represents the financing capacity you may be able to draw on, within your approved limit, your asset position and the applicable margin requirements. Interest only arises once you actually draw on margin funds and a margin balance is created. Tiger charges margin interest on the amount actually borrowed, not on your full approved limit. Important: This material is provided for general educational and informational purposes only and does not constitute financial product advice, investment advice, or a reco

Say you sold an Apple holding on Monday, and later the same day you spot a fresh opportunity in NVIDIA or another stock. Once you sell, the order is filled — but the cash may still be working its way through settlement. $Apple(AAPL)$ $NVIDIA(NVDA)$ Since 28 May 2024, the standard settlement cycle for most US securities transactions has shortened from T+2 to T+1. In other words, a US stock sold on Monday will normally settle on the next business day. Important: This material is provided for general educational and informational purposes only and does not constitute financial product advice, investment advice, or a recommendation. Margin lending, short selling, and other leveraged trading strategies involve

🌟🌟🌟The financial winds have shifted.  With the Federal Reserve lifting rates & the RBA matching that hawkish rhythm, the Big 4 Australian banks $COMMONWEALTH BANK OF AUSTRALIA(CBA.AU)$ $WESTPAC BANKING CORPORATION(WBC.AU)$ $NATIONAL AUSTRALIA BANK LTD(NAB.AU)$ & $ANZ GROUP HOLDINGS LTD(ANZ.AU)$ are set to benefit. When interest r

🌟The correct answer to this quiz is B: Stock A has a lower margin requirement. Why? Even though you are deploying an identical USD10,000 of principal into both assets, Tiger Brokers do not view them with equal risk. Example: $BHP GROUP LTD(BHP.AU)$ vs $COBRE LTD(CBE.AU)$ BHP has a market cap of AUD 200 billion while Cobre has a market cap of only AUD 308 million.  Price volatility: BHP is moderate & follows trends with global macro economic implications. Cobre is highly volatile & tends to swing wildly. Why BHP is given maximum leverage: The asset is stable, transparent & ultra liquid. Why Cobre commands high margin: Small cap explorers like Cobre may not have the buyers on the ot

🌟🌟🌟I will wait for a Callback (Option C).  While the long term thematic bull case for copper is incredibly strong, chasing it right now can be risky.  Why? Valuation Stretch: $BHP GROUP LTD(BHP.AU)$ 's underlying copper segment is performing brilliantly, contributing up to 54% of its total EBITDA.  However BHP is currently trading at a 40% premium according to its intrinsic fair value. Global Copper Mine Production is down by 1.1%.  While raw copper prices look strong, actual industrial production is feeling intense economic pressure. The Tariff Volatility Trap: A massive driver of these record highs is short term inventory hoarding driven by fear of upcoming global import tariffs. My Action Plan: Dollar Cost Averaging into

My answer: B. USD 300 loss. Simple calculation: Short 10 shares at $100 → receive $1,000 Price rises to $130 Buy back 10 shares → pay $1,300 Loss = $1,300 − $1,000 = $300 Easy rule: Short + price goes down → you make money. Short + price goes up → you lose money. The higher the stock rises, the bigger your potential loss. Important: Short selling is riskier than normal buying because a stock can theoretically rise without limit.

D — All of the above. A margin call is not simply about a stock price falling. The real risk is whether your Excess Liquidity (EL) remains above the required level. A leveraged position falling can quickly reduce your equity. But higher margin requirements, cash withdrawals, new leveraged positions, exchange-rate moves, and excessive concentration can also push your account toward liquidation. The key distinction is simple: EL tells you how close you are to liquidation, while AEE tells you whether you have room to open new positions. The biggest lesson? Leverage magnifies both gains and losses. Don’t wait for a margin call notification—monitor your risk level continuously and keep enough liquidity to survive a sharp market move. @Tiger_AU

Answer: B. Stock A has a lower margin requirement. The interesting part is that margin isn’t determined simply by how much you invest. Two stocks worth USD 10,000 can consume very different amounts of buying power because brokers assess factors such as volatility, liquidity, price movements and overall risk. For example, a stock with a 30% margin requirement would tie up USD 3,000, while another with a 50% requirement would tie up USD 5,000—even though the position values are identical. And here’s the part margin traders shouldn’t overlook: margin requirements can change. A stock offering high leverage today may require more margin tomorrow if market conditions deteriorate. So, “up to 4× leverage” should never be interpreted as guaranteed borrowing power. The smarter question is not “How m

My view: this is a very important point for beginners to understand. A margin limit is NOT borrowed money. For example: Margin limit: AUD 50,000 Actually borrowed: AUD 10,000 Interest is charged on: AUD 10,000 only So simply having a large margin limit does not mean you are paying interest. However, margin trading is risky. If the stock falls sharply, you may lose more money and could face a margin call. My advice: If you are a beginner and investing for the long term, avoid using margin unless you fully understand the risks. Quiz answer: C — AUD 10,000.

I’d pick C. 💡 If there’s no USD cash available to settle a US stock purchase, the position can result in a USD margin loan, with interest potentially accruing on the borrowed amount. The key lesson: having AUD cash doesn’t automatically mean you have USD cash available without financing implications.

C — USD margin loan. 💵 If there’s no USD cash available to fund the U.S. stock purchase, the trade can create a USD borrowing balance, and interest may accrue. The key is that holding AUD doesn’t automatically mean you have USD available without a currency conversion or financing cost. 📊

D — All of the above. 📉 A leveraged position falling in value reduces your equity, higher margin requirements raise the amount you need to maintain, and withdrawing cash reduces your safety cushion. Any of these can bring an account closer to a margin call.

B. A USD 300 loss. You short-sell 10 shares at USD 100, receiving USD 1,000. When the price rises to USD 130, buying back those 10 shares costs USD 1,300. Loss = USD 1,000 − USD 1,300 = −USD 300. Borrowing the shares does not protect you from losses. A short seller profits when the share price falls and loses when it rises. This also highlights the key risk of short selling: the potential loss is theoretically unlimited because a stock price has no fixed upper limit.

B. A USD 300 loss. You short-sell 10 shares at USD 100, receiving USD 1,000. When the price rises to USD 130, buying back those 10 shares costs USD 1,300. Loss = USD 1,000 − USD 1,300 = −USD 300. Borrowing the shares does not protect you from losses. A short seller profits when the share price falls and loses when it rises. This also highlights the key risk of short selling: the potential loss is theoretically unlimited because a stock price has no fixed upper limit.

B — A USD 300 loss. 📉 You shorted at $100 and bought back at $130, losing $30 × 10 shares = $300. With a short position, you lose when the stock price rises.