The total market value of securities in your account.
The total market value of all long positions in your account.
The total market value of all short positions in your account, counted as negative in the calculation of securities market value.
Max Buying Power is an approximate figure calculated based on available funds. Canadian brokers usually require a 30% margin for stocks, thus max BP is calculated as available funds divided by 30%. For example, with $30k CAD available fund, the max BP is $100k CAD. This estimate mainly applies to stocks and may not fully reflect the requirements for derivatives or specific stocks with different margins. If the margin account's assets fall below $2500 CAD, it operates as a cash account with Max BP equal to the available funds.
Available funds are the actual amount available for purchasing securities. If available funds are negative, further asset purchases are not permitted. Calculation Formula: Available Funds = Total Net Assets - Position Value in U.S. Options - Initial Margin.
The leverage ratio is an indicator that measures the risk level of your portfolio. Calculation Formula:Gross Position Value / Net Assets, where the Gross Position Value = Long Position Value + Absolute Value of Short Position Value. For example, if you have $5k CAD cash balance, $5k CAD in short positions and $40k CAD in long positions, the gross position value would be $45k CAD. In the calculation of net assets, these positions will offset, resulting in $40k CAD ($40k CAD-$5k CAD+$5k CAD). Then your Leverage Ratio = 45/50 = 1.125.
Excess liquidity refers to the additional funds that you have after taking into account what is required to purchase your current positions. Calculation Formula: Excess liquidity = Net Assets - Position Value in U.S. Options - Initial Margin.
The initial margin is the sum of the initial margins for all securities. Canadian brokers typically require a 30% initial margin for most stocks, but other ratios also exist, influenced by factors such as the direction of holdings, type, currency, and liquidity.
The maintenance margin is the sum of the maintenance margins for all securities. Canadian brokers typically require a 30% maintenance margin for most stocks, but other ratios also exist, influenced by factors such as the direction of holdings, type, currency, and liquidity.