Cash Boost Account Settlement Rules
Instead of having to fund the account to trade, clients may be given a credit limit in the Cash Boost Account (CBA) which they can use to trade.
Clients can use the credit limit granted in the account to trade stocks and ETFs. Tradable markets include Singapore, US, Hong Kong and China A-shares.
All the unsettled filled orders can be viewed in the outstanding position 12 hours after market trading hours. Trades or contra positions which have been cash settled can be viewed in the settled position page.
Contra gain and sell contract amount (with sufficient settled holding and no corresponding unsettled buy contract to contra) will be auto settled and credited to the account on the same trading day and become available funds for other settlement. However, the fund can only be withdrawn or converted after market settlement due date*.
*Settlement due date reference: https://www.tigerbrokers.com.sg/help/detail/trading-tules
All the outstanding buy contracts and contra losses will be automatically settled on Trade Date if the account has sufficient funds, following a "first in, first out" (FIFO) manner.
If the account do not have sufficient funds to settle the outstanding buy contract, client should close the position on or before settlement due date to prevent the contract being automatically forcesold on the forced liquidation day (settlement due date +2). Once the outstanding position is closed, the buy and sell contracts will be offset following a "first in, first out" (FIFO) manner and contra gain/contra loss will be generated. If the buy and sell quantity do not match, the offset will be performed with the lesser quantity.
Example:
2024-01-02: Client buys 100 shares of SIA
2024-01-03: Client buys 300 shares of SIA
2024-01-04: Client sells 300 shares of SIA
Assuming client do not have sufficient fund to settle the two buys contracts, on 2024-01-04 after market closed, 300 SIA sell contract will be contra off with 100 SIA buy contract on 2024-01-02 and 200 shares buy contract on 2024-01-03 (300 SIA buy contract on 2024-01-03 will be splitted to 200 shares and 100 shares), contra loss/contra gain will then be generated. The remaining buy contract of 100 shares SIA on 2024-01-03 will remain outstanding.
After the corresponding buy and sell contracts offset with each other, contra gain or loss will be generated. A positive difference is "contra gain," and will be settled into the account as as available funds after due date. A negative difference is "contra loss," and the customer needs to deposit funds into the account as soon as possible to settle the loss to prevent interest charges.
Priority for settlement using the account available funds in the settlement at the point of settlement is as follows:
Outstanding buy contract with older trade date will be settled first
For same trade day, contracts with higher value will be settled first
Contra loss will then be settled (can be partially settled)
Outstanding buy contract can not be partially settled
Example:
2024-01-02: Client purchased 100 shares of SIA at SGD1.00, with a contract value of SGD100.
2024-01-03: Client sold 50 shares of SIA at SGD0.9, with a contract value of SGD45.
The 100-share buy contract from 2024-01-02 will be splitted into two contracts (50 shares each). The split 50-share contract will be contra with the 50-share sell contract from 2024-01-03, generating a "Contra Loss" of SGD5. The other split 50-share contract (SGD50) reamins as outstanding buy contract.
2024-01-04: The customer deposited SGD100.
The outstanding buy contract from 2024-01-02 will be cash settled and customer's available funds became SGD50.
Thereafter, the outsanding SGD5 "Contra Loss" will be cash settled. The customer's available funds became SGD45.
If the account lacks sufficient funds to settle outstanding buy contracts and the position is not closed before the forced liquidation day, the position may be forced sold on the liquidation date, resulting in a reduction/frozen of the account's credit limit.
If there is oustanding "contra loss" overdue for more than 5 trading days, the account's credit limit will be reduced or frozen until all outstanding "contra losses" are settled. If the client fails to make payment for the contra loss within a specified time frame, their account may be flagged for inclusion in the delinquent list that will affect their credit standing in Singapore.
Auto-currency conversion will be switch on by default for Cash Boost Account. Auto currency conversion will be performed if there are outstanding positions due for force selling or outstanding contra loss in the settlement currency on a best effort basis. It is client's responsibility to ensure sufficient balances in the settlement currency to avoid the contract being force sold when there is sufficient balances in other currencies.