To The Moon

Some users notice:

I bought USD 10,000 of two different stocks — why did one tie up less margin than the other?

Because securities differ in risk, volatility and liquidity, the applicable margin requirements may differ too.

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.

What range do margin rates fall in?

Taking historical volatility, liquidity and risk into account, not every stock can be bought at 4× leverage. Long margin rates typically sit in the 25%–100% range:

Short margin requirements may exceed 100%. Taking AAPL as an example: the long initial margin rate is 30% and maintenance 25%, while the short initial is 35% and maintenance 30%.

There is also an account-level measure: leverage = sum of absolute securities market values ÷ total assets. The intraday leverage cap for a margin account is 4×.

Where do you look these two numbers up?

• A stock's margin rate: search for the stock in Tiger Trade, open the stock detail page, and tap the margin/securities-lending marker in the quote area.

• How much margin an order will tie up: on the order screen, check the required margin on the order preview page.

Example: a popular stock on its earnings date

Suppose NVIDIA, Tesla or another closely watched stock is about to report earnings. Prices may move sharply around the release.

A broker may adjust margin requirements for the relevant securities based on market conditions, price movements, liquidity and account risk. Tiger also reserves the right to adjust margin rates or to stop providing financing, depending on market and account circumstances.

Which means:

• a stock that offers high margin capacity today

• may not keep the same margin rate tomorrow;

• and even if a user does not add to a position, a change in margin requirements may still affect account risk.

Beyond the individual stock, your account structure can also trigger a margin add-on

Three common margin add-on scenarios arise not because "this stock is risky", but because the structure of the account's holdings creates extra risk:

• Automatic add-on, automatic release: an add-on triggered by excessive single-stock weight is released automatically once the weight returns to normal — no manual application needed.

• Same underlying, same direction is the most dangerous concentration: when exposure is concentrated in one underlying and one direction, a violent move in that underlying may push the account into deficit.

• A vertical spread's "maximum loss" is not an absolute cap: the maximum loss equals the strike difference only if both legs are exercised. If the long leg is not exercised while the short leg is assigned, the loss may exceed that difference.

"Up to 4× leverage" generally refers to the theoretical ceiling at a particular margin rate. It does not mean every client and every security can obtain 4× financing capacity. Your actual limit depends on account eligibility, the security's margin requirement and the risk assessment outcome.

Key takeaway

Margin capacity is not just about your total account limit — it also depends on the margin rate applicable to the specific security and on how concentrated your holdings are. Margin requirements may also change with market conditions.

Further reading (Help Centre)

• Margin increase scenarios

• Leverage

Quiz

You buy USD 10,000 of Stock A and USD 10,000 of Stock B, but Stock A requires less margin than Stock B.

What is the most likely reason?

A. Stock A has a lower share price
B. Stock A has a lower margin requirement
C. Stock A has a larger market cap
D. Both stocks should always require the same margin

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Upgrade to Margin Account now and enjoy a limited-time offer: successfully open a margin account to receive 10 brokerage-free trades + 2,000 Tiger Coins*. Tiger Coins can be used to redeem vouchers, merchandise, and more.

*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.