To The Moon

Margin interest is generally calculated on the following factors:

amount actually borrowed × annual rate × number of days actually used

Tiger accrues margin interest daily and charges it monthly; the day-count basis may differ by currency. The current annual margin rate for AUD, USD, HKD and CNH is 7.99%, but rates may change — the figures shown in your account and on the official pages prevail.

Important: This material is provided for general educational and informational purposes only and does not constitute financial product advice, investment advice, or a recommendation. Margin lending, short selling, and other leveraged trading strategies involve significant risks and may not be suitable for all investors. Losses may exceed your initial investment. Before investing, consider whether the product is appropriate for your objectives, financial situation and needs, and read the relevant PDS and risk disclosures.

Two further details are worth spelling out:

• No compounding: interest that has accrued but is not yet settled does not itself accrue interest.

• Billed monthly: interest accrues daily and normally appears in your statement around the fourth US trading day of the following month; your statement prevails.

Check the latest margin rates: https://www.itiger.com/au/commissions/fees/financing_interest_rates

An example

Suppose a user actually borrows:

• USD 10,000

• annual rate: 7.99%

• period used: 10 days

• USD accrues on a 360-day basis

A rough calculation:

USD 10,000 × 7.99% × 10 ÷ 360

≈ USD 22.19

Which means that repaying the financing early reduces the number of days on which interest accrues.

What creates a margin loan?

Note that all of the following may create a margin loan:

• buying US stocks without sufficient USD (the system automatically creates a margin loan secured against account assets);

• using margin to increase position size;

• a cash balance in any currency turning negative;

• withdrawing more than "cash withdrawable" — the excess is a margin drawdown, expected to begin accruing interest after the daily settlement;

• holding cash in one currency but withdrawing another — withdrawals do not auto-convert, so financing arises in the withdrawn currency;

• in a cash account, trading or withdrawing after a currency conversion but before settlement completes may also incur interest (currency conversion takes 2 business days to settle).

How do you trade on your margin limit?

How do you check how much margin you have used?

How to view your accrued margin interest?

"I already closed my positions — why is interest still accruing?"

This is one of the more common questions our client service team receives. There are a few typical reasons:

• your margin position relates to all account activity — placing further orders or participating in an IPO after submitting a withdrawal request may also trigger interest;

• a debit balance remaining in another currency will also accrue interest;

• proceeds from closing positions or converting currency must settle (usually at least two trading days, excluding holidays) before they count towards "cash withdrawable"; withdrawing before then creates financing.

To withdraw everything without creating financing, you will generally need to wait for settlement, then submit a separate withdrawal for each currency based on the cash withdrawable shown on that currency's page. If a currency is in debit, that debit must be cleared via currency conversion before the withdrawal request.

Two things to check if you want to pay less interest

1. Whether "end-of-day currency conversion repayment" is switched on: this feature is enabled when the margin account is opened, and before interest accrues each day it converts settled available funds in other currencies into the borrowed currency and repays outstanding borrowings automatically, reducing accrued interest. Check its status under Portfolio → Convert → Set up Auto Conversion (see Issue 3).

2. The interest accrual cut-off: repayment generally needs to complete before interest accrues at 2:00 p.m. AEST / 3:00 p.m. AEDT the next day in order to reduce that period's interest.

Key takeaway

Interest is calculated on the margin balance actually outstanding and the time it is actually used. The more you borrow and the longer you hold it, the higher the financing cost.

Further reading (Help Centre)

• Margin interest rates (official rates page)

• Withdrawable funds in a margin account

• End-of-day currency conversion repayment

• What is margin trading

Quiz: You borrow USD 10,000 at an annual margin rate of 7.99% for 10 days. Using a 360-day basis, approximately how much interest would you pay?

• A. USD 7.99

• B. USD 22.19

• C. USD 79.90

• D. USD 221.90

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Upgrade to Margin Account now and enjoy a limited-time offer: successfully open a margin account to receive 10 brokerage-free trades + 2,000 Tiger Coins*. Tiger Coins can be used to redeem vouchers, merchandise, and more.

*Min. brokerage waived. Third-party trading fees and other fees still apply. The card is valid for 60 days. See T&Cs . Trading in derivatives or leveraged financial products involves significant risks, including the risk of losses exceeding initial investment, and may not be suitable for every investor.

Upgrading to a margin account provides access to a broader range of tools and features. Whether to use these features should be considered carefully based on your investment objectives, financial situation, trading experience, and risk tolerance. For more details on margin account features, currency-specific interest rates, and fee schedules, please visit the Margin Account page and Pricing page, Help Centre and our Risk Disclosure.

This material is provided for general information purposes only and does not constitute financial product advice, investment advice or a recommendation. This information does not take into account your objectives, financial situation or needs. Any securities mentioned are provided for illustrative purposes only and do not constitute a recommendation, solicitation or endorsement. All investment products carry risk and are not suitable for all investors. Margin lending and short selling carry a high level of risk and may not be suitable for all investors. If the value of your collateral falls or your position moves against you, Tiger Brokers (AU) may be required to sell your holdings or close your positions without prior notice to meet margin requirements or limit potential losses. Rates, margin requirements, product features and eligibility criteria are subject to change, and the information available on the Tiger platform and official website at the relevant time will prevail. Before trading, please read the relevant PDS and T&Cs, ensure you fully understand the risks involved, and seek independent professional advice where appropriate.