When managing your account on Tiger Brokers, a broker online, you may notice that the Withdrawable Cash amount differs from the Cash Balance shown in your account. While both represent available funds, they are calculated differently and have specific factors that determine how much you can actually withdraw.
What is Cash Balance?
The Cash Balance in your account is the total amount of cash available in your Tiger Brokers account at any given time. This includes all funds you’ve deposited, plus any cash from settled trades or available funds from margin financing. However, this is a total amount and does not consider certain conditions like ongoing trades, unsettled transactions, or cash tied up in short selling positions.
What is Withdrawable Cash?
The Withdrawable Cash, on the other hand, is the portion of your total Cash Balance that is actually available for withdrawal. Unlike the Cash Balance, Withdrawable Cash is calculated after factoring in various restrictions, including active trades, unsettled cash, and cash associated with margin loans or short selling.
For example, if you’ve recently sold an asset but the funds are still unsettled, those funds may appear in your Cash Balance but cannot be withdrawn until they are fully settled. Similarly, if you have any margin financing or short selling positions, the funds tied up in those activities will not be included in your Withdrawable Cash.
Key Differences Between Cash Balance and Withdrawable Cash
Cash Balance is the total amount of cash in your account, while Withdrawable Cash is the amount available for withdrawal after considering ongoing activities.
Withdrawable Cash may be less than your Cash Balance, as it excludes unsettled cash, funds tied up in margin loans, or short selling.
Withdrawable Cash reflects the actual funds you can withdraw without causing any financing or margin issues.
Factors Affecting Withdrawable Cash
Several factors affect the calculation of Withdrawable Cash:
Unsettled Cash: Cash from completed trades that have not yet been fully settled.
Margin Loans: If you’re using a margin account, the cash tied up in your margin loans is excluded from Withdrawable Cash.
Short Selling: Cash from short selling activities is also excluded, as it may be used to cover potential liabilities.
Pending Transactions: Funds tied up in ongoing trades or transactions that haven’t yet been completed may reduce the amount of Withdrawable Cash.
Summary
While your Cash Balance reflects the total funds in your account on Tiger Brokers, the Withdrawable Cash is the actual amount you can take out without triggering any financing obligations. Remember, Withdrawable Cash is typically less than Cash Balance, as it excludes funds tied up in unsettled transactions, margin loans, or short selling.
