To The Moon

Once an account is granted a margin limit, some users think:

If the system says it is available, shouldn't I use all of the buying power?

A margin limit represents a ceiling on what you may use. It is not a suggested position size.

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.

First, understand where "buying power" comes from

• In a margin account, maximum buying power = 4 × available funds — the theoretical ceiling derived from a 25% margin rate;

• how much buying power you can actually deploy on a given stock is calculated using that security's applicable margin rate, and long margin rates typically sit between 25% and 100%;

• at account level, leverage = sum of absolute securities market values ÷ total assets, with an intraday cap of 4× for margin accounts.

In other words, the maximum buying power shown in the App is a theoretical ceiling, not a recommended purchase amount.

Same stock, different position sizes — what changes?

Suppose a stock falls 10%.

Without margin

• own funds: USD 10,000

• position size: USD 10,000

• loss: about USD 1,000

With 2× exposure

• own funds: USD 10,000

• position size: USD 20,000

• loss: about USD 2,000

• plus margin interest to consider

If the proportion of margin used is too high, all of the following can rapidly compress the account's buffer:

• a fall in the share price;

• a price gap after an earnings release;

• an increase in the margin rate;

• a change in exchange rates;

• an oversized weight in a single holding.

Maxing out the limit usually means hitting two problems at once

First, the account's excess liquidity (EL) is squeezed thin. EL = equity with loan value ELV − maintenance margin MM. The lower EL is, the higher the liquidation risk; below 0 the account will be force-liquidated, and liquidation is executed via market orders, with any position potentially closed.

Second, using the full limit usually means more concentrated holdings. The Help Centre notes that when a single stock or ETF makes up too large a share of account market value (for example above 50%), the system automatically applies a margin add-on. That add-on further raises the maintenance margin requirement, squeezing the buffer from both ends — which is why "maxed-out limit + single heavy position" is the most concentrated risk combination.

So an unused margin limit is not "wasted" — it is part of the buffer your account has for market volatility.

Key takeaway

A margin limit is a tool's ceiling, not a suggested usage level. Keeping part of the limit unused leaves room to adjust when markets move.

Further reading (Help Centre)

• Leverage

• Available buying power

• Important notices before using a margin account

• Margin increase scenarios

Quiz: Your margin account shows USD 40,000 in maximum buying power. What does this mean?

• A. You should use the full USD 40,000 to maximise returns

• B. USD 40,000 is the theoretical maximum available under current margin rules, not a recommended position size

• C. You must use at least 50% of the limit to keep the account active

• D. USD 40,000 is all cash owned by you

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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.