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Current Excess Liquidity

Trading Term

Current Excess Liquidity represents the margin cushion before liquidation. It is calculated differently for different account segments:

  • For Securities segment: Excess Liquidity = Equity with Loan Value – Maintenance Margin
  • For Commodities segment: Excess Liquidity = Net Liquidation Value – Maintenance Margin

When Current Excess Liquidity becomes negative, the account no longer meets minimum Maintenance Margin requirements and positions may be liquidated to return the account to margin compliance.

For accounts with both securities and commodities segments, the displayed Current Excess Liquidity value represents the total across both segments. A positive or negative total Excess Liquidity does not indicate the status of individual segments, so it’s important to check values for each segment separately.

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