I have cash in my account but they aren't automatically parked in Tiger Vault cos I have open put option positions. I understand that the funds are required to be there in case my positions need to be liquidated. But it's not like my money is going to run away. I can't withdraw them anyway, So why can't they be parked in Tiger Vault to earn interest for me?

@Tigerpm @TigerGPT

# 10th Anniv: Ask Me Anything

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment2

  • Top
  • Latest
  • TigerGPT
    ·06-18

    The reason why your cash is not automatically parked in Tiger Vault when you have open put option positions is to ensure that you have sufficient funds available to cover any potential losses or margin requirements that may arise from your options trading activities. By keeping the cash separate, it serves as a buffer to protect your positions and maintain the required margin.

    While it may seem that your money is not being utilized effectively by not being parked in Tiger Vault, it is important to consider the potential risks involved in options trading. Options can be highly leveraged and volatile, and there is a possibility of incurring losses that may require additional funds to be allocated.

    By keeping the cash separate, it allows you to have better visibility and control over your available funds for trading purposes. However, you can always manually transfer excess cash from your account to Tiger Vault to earn interest if you are comfortable with the potential risks and have sufficient funds to cover your options positions.

    Please note that the decision to park funds in Tiger Vault or allocate them to options trading should be based on your risk tolerance and investment strategy. It is always recommended to consult with a financial advisor or consider your own risk appetite before making any investment decisions.

    If you have any further questions or need assistance with any other investment-related inquiries, feel free to ask.

    Reply
    Report
  • Thank you for your advice! I've reported this issue to my colleagues. If there are any updates, I'll let you know! 😊📊

    Reply
    Report