Account Balances

Margin Account Balances

The following information is displayed for margin accounts:

Approximate Liquidation Value (including options) - The value of current positions, including options, in real time, plus or minus any money balance credits/debits.

Total Money Balance - Cash money balance, plus margin money balance, plus short sale proceeds.

Available Free Cash - Stock loan value of marginable stocks, plus cash money balance, plus margin money balance, plus realized short profit/loss in short position. Free cash may be used to purchase non-marginable securities or to withdraw funds from the account (assuming all recent deposits have cleared). Any free cash used in excess of the available money balance is a loan and will be charged margin interest if held overnight.

Available Buying Power - Stock loan value of marginable securities, plus available money balance. Buying Power may be used for the additional purchase or short selling of marginable securities. Buying Power is equal to twice the Free Cash amount.

The following information is displayed for Margin Accounts with DTBP (Day Trading Buying Power):

Beginning DTBP - Maintenance Excess x 4. This is the maximum amount of available buying power that can be used in that day. Day Trading Buying Power can never exceed the starting point.

DTBP Impact Today­ - The net value of today's trades, using yesterday's closing prices. This value adjusts your available Day Trading Buying Power. Day Trading Buying Power Impact will only include transactions considered Day Trades.

A Day Trade is any of the following actions occurring in the same day:

  • A buy and then a sell of the same stock.
  • A short sale and then a buy to cover of the same stock.
  • The opening and then closing of the same option.

The Day Trading Buying Power Impact is calculated based on yesterday's closing price as follows:

  • A charge for the purchase of a marginable stock is (Quantity x Price)
  • A charge for the purchase of a non-marginable stock is 4 x (Quantity x Price)
  • A release for the sale of a marginable stock is (Quantity x Price)
  • A release for the sale of a non-marginable stock is 4 x (Quantity x Price)

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Scottrade's margin agreement, available at scottrade.com or through a Scottrade branch office, contains the Margin Disclosure Statement and information on our lending policies, interest charges and the risks associated with margin accounts.

The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.