Margin 101 | 10 Seven Risk Checks for a Margin Account Before Earnings
Around earnings releases from NVIDIA, Tesla, Apple and other closely watched stocks, prices may move sharply. $NVIDIA(NVDA)$ $Tesla Motors(TSLA)$ $Apple(AAPL)$
For margin account users, earnings season is not only about the direction of a stock — it is also about account risk.
1. Check your margin balance
Confirm how much margin you have actually used, rather than only looking at total account buying power. The used margin loan is the only part that accrues interest, and it is the starting point for judging your real leverage. You can check your used margin loan via [Account] page or [Enquiry for Margin Limit].
2. Check the stock's margin requirement
Around earnings or other major events, margin requirements for some stocks may be adjusted.
Where to look: stock detail page → quote area → tap the margin/securities-lending marker to see long and short initial and maintenance margin rates. Before placing an order you can also confirm the margin the order will tie up under Order Preview.
3. Confirm whether your holdings are over-concentrated
If most of the account's assets sit in one stock, a price gap may materially affect account net value.
Beyond net value swings, concentration itself carries an additional margin cost: when a single stock or ETF makes up too large a share of account market value (for example above 50%), the system automatically applies a margin add-on. It is released automatically once the weight returns to normal — no manual application needed.
4. Keep some buying power in reserve, and watch excess liquidity
Do not commit your entire margin limit to positions — leave a buffer for price and margin changes.
You can view your risk level on the Porfolio → risk status page, measured as excess liquidity ratio = excess liquidity ÷ total equity. The lower excess liquidity (EL) is, the higher the forced-liquidation risk; below 0, the account will be force-liquidated. Liquidation is executed via market orders, and any or all positions in the account may be closed.
5. Review foreign-currency debit balances and auto-conversion settings
If you hold AUD assets and use USD financing to trade US stocks, you need to consider both the share price and the exchange rate — an adverse FX move can create a margin shortfall directly.
We also suggest confirming the status of "end-of-day currency conversion repayment" (Portfolio → Convert → Set up Auto Conversion). It is on by default and, before interest accrues each day, converts settled available funds in other currencies into the borrowed currency and repays automatically, reducing accrued interest. When switched off, borrowings keep accruing interest until you convert currency yourself or repay with settled proceeds.
6. Set up alerts in advance
Set price alerts, earnings reminders and account risk notifications so you do not miss important changes.
7. Plan your exit or repayment in advance
Before establishing a margin position, decide how you will repay the financing — by depositing funds, converting currency or selling assets.
Note that proceeds from closing positions must settle (usually at least two trading days, excluding holidays) before they count towards "cash withdrawable"; withdrawing before then creates financing and accrues interest. If a currency is in debit, clear it via currency conversion before withdrawing.
Key takeaway
Managing margin risk is not about predicting every move — it is about making sure the account still has room to adjust when conditions turn against you.
Further reading (Help Centre)
Quiz：Earnings are tonight. What should you check first?
You hold a large position in a stock reporting earnings tonight and are already using margin. Which approach is more appropriate before the announcement?
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A. Use the rest of your buying power before earnings in case the stock jumps
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B. Focus only on whether the company will beat or miss expectations
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C. Check your margin balance, margin requirements, concentration and excess liquidity, while keeping some buffer
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D. Wait until after earnings to review account risk
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This option focuses on risk management, which is especially important when holding a leveraged position through a potentially volatile event like an earnings announcement.
Managing risk before a major market event can help prevent unexpected margin calls or forced liquidation if the stock moves unfavorably.
Before earnings, I’d check four things: actual margin used, current margin requirements, position concentration, and excess liquidity. A stock can gap 10–20% overnight, while a higher margin requirement can amplify the pressure even if the underlying business story hasn’t changed.
The key is to preserve room to be wrong. Buying power is not the same as risk capacity. I’d also review FX debits and auto-conversion settings, especially when financing in one currency while holding assets in another.
Earnings are about expectations. Margin management is about survival. I’d rather miss part of a rally than be forced to sell into a gap down.
@Tiger_AU [捂嘴]
财报季里，用保证金最重要的不是“猜对方向”，而是确保就算猜错，账户也还有调整空间。
像 NVDA、TSLA、AAPL 这种高关注股票，财报后很容易出现跳空。如果同时用了融资、仓位又集中，风险会被叠加放大：
股价下跌 + 保证金要求提高 + 超额流动性下降。
最危险的不是账面暂时亏损，而是还没等到股价修复，账户就先触发被动减仓甚至强平。
所以财报前我会先看四个东西：
融资余额、维持保证金率、持仓集中度、超额流动性。
另外，如果主要资产是 AUD，却用 USD 融资买美股，还要多看一层：
股价风险 + 汇率风险。
对我来说，融资账户最重要的原则不是“把购买力用满”，而是永远留缓冲。
真正好的风险管理，不是确保每次财报都判断正确，而是确保一次判断错误不会让账户失去主动权。
Before earnings, a margin user should check account risk first, not simply guess whether the stock will rise or fall.
Check:
Margin balance — how much you actually borrowed.
Margin requirement — it may change.
Concentration — too much money in one stock increases risk.
Excess liquidity — keep a safety buffer.
Buying power — don’t use everything.
Simple rule:
Earnings can cause a sudden big price move. Margin can make the loss much bigger.
So, protect your account first and leave enough room for unexpected moves.
Answer: C — Check the risks and keep a buffer.