Unified Buying Power for Margin Accounts and Event Contract Trading

Unified Buying Power for Margin Accounts

• Your margin account uses unified buying power, where securities and event contracts share the same buying power framework.

• Buying power used for event contract trading is calculated from your margin account buying power in the same way as securities trading.

• You can trade event contracts directly using available funds in your securities account without making manual fund transfers.

• If your securities account meets margin eligibility requirements and has net assets above USD 2,000, event contract trading can also utilize securities margin buying power, providing increased available buying power.

How Event Contract Trading Affects Buying Power

• Event contracts require full cash payment. The total order cost, including fees, will reduce your unified buying power and securities excess liquidity.

• Intraday profits from event contracts are immediately available to trade more event contracts. However, these funds will not increase your securities buying power or excess liquidity until settlement and fund reallocation are complete.

• The market value of event contracts is not included in your securities net assets. Therefore, buying them reduces your total securities net assets, which may limit your margin buying power and excess liquidity.

Q: Do cash accounts support unified buying power and event contract trading?

A: No. Cash and margin accounts are strictly separate. To trade event contracts, you must open a margin account and fund it by either depositing cash or transferring funds from your cash account.

Q: Why can't I buy stocks after selling event contracts for a profit?

A: Unsettled event contract proceeds are prioritized for trading more event contracts. They will not increase your securities buying power until settlement is complete and funds are automatically transferred.

Example:

Q: If my securities account has a margin deficit, can I sell event contracts to meet the margin requirement?

A: No. Proceeds from selling event contracts do not immediately increase the excess liquidity in your securities account. These funds will only count toward your securities excess liquidity once the trade settles and the system automatically transfers the funds.