Frequently Asked Questions
Stock Options
How do I read the Option Portfolio balance?
- Portfolio Value: Total portfolio valuation which is the aggregate of all positions and cash balance
- Buying Power: Amount available for trading. It is calculated as Allowance +(Sell added only upon fill) OR -(Buy deducted upon order placement and fill) premiums for option trades.
- P/L: Intraday P/L for all options positions. It is calculated based on bid(for long)/ask(for short) quotes with previous close as reference price.
- Cash Flow(P3)/Balance Used (Poems Web): Intraday total cash flow from option trades. It is calculated as negative for buy trades and positive for sell trades.
- Avail Balance/Buying Power: Amount available for trading. It is calculated as Allowance +(Sell added upon fill) OR -(Buy deducted upon order placement) premiums for option trades.
- Maintain Margin: Margin requirement for option positions
- Allowance(P3)/SOD+Allowance(Poems Web): Start of Day trading limit.
- P/L: Intraday P/L for all options positions. It is calculated based on bid(for long)/ask(for short) quotes with previous close as reference price.
- Stock Value: Market value of stock positions
Example to calculate Portfolio Value
Available Balance = Buying Power = Cash available for trading = 6,528.72
Maintenance Margin = Cash earmarked for cash secured puts position = 3,800
Stock Value = 2,198
Options Value (Market Value) = (-15) + (-30) + (-76) + 6,110 = 5,989 Portfolio Value = Available Balance/Buying Power + Maintenance Margin + Stock Value + Options Value
18,515.72 = 6,528.72 + 3,800 + 2,198 + 5,989
Other faq that might help you
- How are options classified?
- How do I make sense of an option symbol?
- What are the moneyness of options?
- What are the Greeks in option trading?
- What are the risks involved in trading options?
- What happens after I’ve entered into an options position?
- Are there any forms required prior to trading Options?
- What are the eligible account types to trade Options?
- How long is the approval process for Option Activation?
- Why are Exercise/Assignment activities not shown on the same day of the e-statements?
- What are some of the common reasons for order rejection?
- How do I transfer funds into my Options Account? (Video Guide)
- How do I transfer funds into my Options Account?
- How do I transfer stocks into my Options Account? (Video Guide)
- How do I transfer stocks into my Options Account?
- Why is there a need to transfer funds/stocks prior to trading options?
- Does POEMS support option strategies?
- What are the supported platforms?
- Is there US Pre-market Trading for options?
- What are the tradable counters available for options?
- What happens if the underlying share is delisted onto OTC?
- Glossary
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