To The Moon

Takeaways:

At Tiger Trade, you're available to various financial products and currencies of multi-countries. To enhance the trading experience, you can gain "unified buying power of multiple currencies" account capabilities with Tiger's margin account, which the loans are closely related to.

In this article, we hope to explain how loans are incurred by introducing the following items with FAQ format:

• The multi-currency rule of Tiger Trade Account, its usage, and potential scenarios with may incur loans.
• How to avoid loans, how to repay the loan, how to calculate the interest, etc.

Q1：When do I get a loan in my account? What's the amount?

1.While you're holding a margin account at Tiger Trade, it's allowed to use the margin with many activities like trades and withdrawals, which may lead to financing. If your request is estimated to incur / increase a loan, you'll see the "reminder of financing" as follows:

• While placing order: If you see the reminder of financing on the placing order or order preview page, you may get the loan once this order filled.
• While requesting withdrawals: If you see the reminder of financing under "withdrawal amount" input box, it means that your withdrawal amount will result in a loan once it's processed.

2.There's difference between the amount on the reminder of financing, and the real loan amount .

• The amount on the reminder of financing is estimated when your request may trigger the financing.It's possible to be different with the real loans amount which appear after requests processed.
• You can visit "Portfolio -> Account" page to view the cash balances. If you see a negative cash balance, the negative part will be the real loan amount.

Q2: What is a multi-currency account? How does it benefit investors? When'll it result in loans?

1.While we provided securities and derivatives trading in markets of multi-countries, it's required to use the local currency while you're trading the products in the market of a country. So that, at Tiger Trade, we support multi- currencies in one account, to meet this type of request and support trading worldwide in one account.

2.At Tiger Trade, we provided currency conversion services to give basic multi-currency support. Meanwhile, in margin accounts, we provided the "unified buying power of multi- currency" services to make the trade easier. For example, USD cash is used while we trade U.S. stocks, ETFs and options, but if:

• You want to open U.S stock positions, but the USD cash is zero in your Tiger Trade account ( supposing that only NZD cash is there in your Tiger Trade account).
• If your account type is Margin Account, and your "unified buying power" is enough, then you can open U.S stock positions instantly, no matter if you have USD cash.
• After order placed:
• If the order is filled, then, related USD cash will be deducted from your account. Then, USD loans will appear in the account.
• If the order isn't filled, the cash balance won't change.

3.The "unified buying power of multi- currency" in Margin Account supports you to place orders no matter you have enough cash with exact currency or not, which means that you'll get more choices:

• Instead of preparing cash in advance, you can choose to convert currency upon exact cash used by order filling, after order is filled.
• You can also hold the loan, and stay in control of your balances.

Q3: Why is there a loan in my cash account? Will it accrue interest?

1.In cash accounts, users' activities which will result in financing are limited, so it's rare to get loan in a cash account. But if your account has unexpected fees charged by the market, the charging may result in loans. For example:

• While you hold an U.S. ADR, you may need to pay ADR fees, which are charged by U.S. "ADR agents" and brokers won't be informed in advance. So if the relevant cash balance is not enough, charging ADR fee will incur a loan.

2.In cash accounts, the loan is very uncommon, and it wouldn't accrue interest.

Q4: How to repay a loan? What is the "Repayment" button used to?

1.Once you have a loan, you can add the loaned cash by depositing funds, converting currencies, closing positions traded with this currency, to repay the loan.

For example: I have a 500 USD loan, as well as 3000 NZD cash. Then, I can choose any of the methods listed below

• Convert currency from NZD to USD, and repay the USD loan. (This is the most popular way)
• Deposit more USD, and repay the USD loan.
• Close some U.S. stock holdings to get the USD cash, repay the USD loan.

2."Repayment" button appears once you have a negative cash balance, which will give access to the quick currency conversion function. By clicking "Repayment", you can directly preview "conversion order by which you can repay the loan immediately".

Q5: Once I owe money in my account, do I need to repay it as soon as possible? Will the loan accrue interest instantly when my balance gets negative?

1.No. You don't need to repay loans instantly, and it won't accrue interest when your balance gets negative.

2.Only overnight loans incur interest after settlement. If you repaid it on the same day, then you wouldn't get interest. Please be informed that we use 00:00 of currency issuing country as cut-off time to check "if the currency is overnight or not".

Using the USD loan as a sample:

• Supposing, at 22:00 15th June New Zealand Time, an order is filled and it uses the margin. At this time I owed 500 USD in my account. Meanwhile, I repaid it 3 hours later by converting NZD to USD (at 01:00 am 16th June) .
• Then, according to the USD time zone (Estern American Time), owing money and repayment happened on the same day.
• So, my 500 USD loan wouldn't incur interest.

Q6: How is interest accrued? How to pay interest?

1.Overnight loans will accrue interest day by day until it's repaid:

• After the daily settlement process, the system will calculate if there is overnight loan today. If yes, interest of this day will be accrued upon the loan amount.
• Financing interest rates: please refer to the help center article "Financing interest rate".

2.Accrued Interest will be paid with your account balances automatically at the beginning of next month.

Q7: How to avoid loans and interests?

You can apply to adjust your Tiger Trade account type to Cash Account. Then, if your activities would result in financing, it'll be limited. Which means, you'll need to prepare cash of related currency before trading overseas markets.

Q8: While I have a loan, will tiger convert currency automatically?

No. Currently, it's needed for you to submit a currency conversion request, unless your account gets a margin call alert.

Disclaimer: In this article, we are trying to resolve frequently asked questions through concise introduction. However, complete margin and financing rule sets will involve a lot of professional financial knowledge, and here we can't introduce all. Meanwhile, there're also some low-frequency financing scenarios, which can't be fully covered by this article.