To The Moon

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 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.

Settlement rhythms differ by market

Different settlement cycles mean different waiting times — which is why "sell then buy again" feels different from market to market.

What can go wrong in a cash account?

In a cash account, if available funds are insufficient, a user may need to:

• wait for the sale proceeds to settle;

• deposit more funds; or

• adjust the original trading plan.

For users who trade more frequently, waiting on settlement can disrupt the rhythm of capital turnover.

How can a margin account help?

If the account still has available margin capacity and meets the applicable margin requirements, a margin account may provide additional buying power for the next trade, so a user does not have to wait for settlement before rearranging a trade.

For example:

Sell Apple on Monday

→ proceeds still settling

→ another opportunity appears the same day

→ where the conditions are met, use margin buying power to complete the next trade

Note, however, that using margin buying power will incur interest.

A related reminder: "sold" does not mean "immediately withdrawable"

The withdrawal page of a margin account shows two figures that mean different things:

• Cash withdrawable: the portion of cash that can be withdrawn without creating margin, calculated from trading activity, settlement status and other factors. Unsettled cash and cash proceeds from securities lending are excluded, so this figure is usually less than or equal to total account cash.

• Maximum withdrawable (including margin): the highest amount that can be withdrawn by drawing on margin, based on the account's asset position. Any amount above cash withdrawable is a margin drawdown and is expected to begin accruing interest after the daily settlement.

If you have closed all positions and want to withdraw everything without creating margin, you will generally need to wait at least two trading days (excluding holidays) after closing or converting currency for settlement to complete, then submit a separate withdrawal for each currency based on the cash withdrawable shown on that currency's page. If a currency is in debit, that debit must be cleared via currency conversion before the withdrawal request.

A margin account does not change market settlement rules — it may offer more flexibility for short-term funding arrangements during the settlement window, where the conditions are met.

Key takeaway

While sale proceeds are still settling, a margin account may top up short-term buying power — but actually using margin still incurs interest and the associated risks.

Further reading (Help Centre)

• Do I have to trade on margin?

• Withdrawable funds in a margin account

• Available buying power

• Cash account vs. margin account

Quiz

You sell your Apple shares on Monday, but the sale proceeds are still settling. Later that day, you spot a new opportunity in NVIDIA.

If you don’t have enough available cash, what could a margin account potentially help with, assuming you meet the margin requirements and have available margin?

• A. Speed up the settlement of your Apple sale

• B. Provide additional buying power for your next trade

• C. Make all trades interest-free

• D. Turn unsettled funds into immediately withdrawable cash

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*Min. brokerage waived. Third-party trading fees and other fees still apply. The card is valid for 60 days. See T&Cs . Trading in derivatives or leveraged financial products involves significant risks, including the risk of losses exceeding initial investment, and may not be suitable for every investor.

Upgrading to a margin account provides access to a broader range of tools and features. Whether to use these features should be considered carefully based on your investment objectives, financial situation, trading experience, and risk tolerance. For more details on margin account features, currency-specific interest rates, and fee schedules, please visit the Margin Account page and Pricing page, Help Centre and our Risk Disclosure.

This material is provided for general information purposes only and does not constitute financial product advice, investment advice or a recommendation. This information does not take into account your objectives, financial situation or needs. Any securities mentioned are provided for illustrative purposes only and do not constitute a recommendation, solicitation or endorsement. All investment products carry risk and are not suitable for all investors. Margin lending and short selling carry a high level of risk and may not be suitable for all investors. If the value of your collateral falls or your position moves against you, Tiger Brokers (AU) may be required to sell your holdings or close your positions without prior notice to meet margin requirements or limit potential losses. Rates, margin requirements, product features and eligibility criteria are subject to change, and the information available on the Tiger platform and official website at the relevant time will prevail. Before trading, please read the relevant PDS and T&Cs, ensure you fully understand the risks involved, and seek independent professional advice where appropriate.