To monitor your account's margin status and ensure compliance, follow these steps:
- Monitor Excess Liquidity:
- Check your account's Excess Liquidity as a percentage of Net Liquidation Value.
- If it falls below 10%, the system automatically sends a margin warning message.
- Ensure that your Current Excess Liquidity remains positive at all times.
- Check Account Window:
- Log in to your account and navigate to the Account window in the Trader Workstation (TWS) platform.
- Look for the following key indicators:
- Special Memorandum Account (SMA)
- Current Excess Liquidity
- Excess Liquidity (Excess Equity over Maintenance Margin Requirement)
- Maintain Positive Values:
- Ensure that your SMA is zero or positive between 15:50 - 17:20 New York time each afternoon.
- Keep your Current Excess Liquidity positive at all times.
- A positive Excess Liquidity is the account's Excess Equity over Maintenance Margin Requirement, even by a small amount, generally indicates that your account is compliant.
- Currency Considerations:
- The excess liquidity may be displayed in different currencies.
- The platform will typically show conversions to your base currency as the totals in your trading screen for easier comparison.
- Avoid Liquidation:
- Accounts with negative Excess Liquidity are subject to liquidation.
- It is the account holder's responsibility to ensure the account does not fall into an Excess Liquidity deficit.
By regularly checking these indicators and maintaining positive values, you can stay informed about your account's margin status and ensure compliance. If you receive a margin call, take immediate action to bring your account back into compliance by either depositing additional funds or reducing your positions.