5

I am totally new to stock and their trading. I have questions when I was trying to understand an account at a brokerage company:

Account 12345678(Margin)
Net Liq Value   $23,416.36 
Buying Power - Stock    $27,064.61
Buying Power - Option  $13,532.30
Cash Balance    $3,648.25
Unsettled Cash  $0.00 

I was wondering

  1. what are the meanings of Net Liq Value and Cash Balance?
  2. What are the meanings of Buying Power - Stock, Buying Power - Option, and Unsettled Cash?
  3. How much money does the account have currently?

Thanks and regards!

5

Here you go:

  • Net Liq Value is the value of the account, if you liquidated all positions right now.
  • Cash balance is the value of your cash or money market holdings.
  • Stock buying power is the amount of marginable securities that you can buy now.
  • Options buying power is the amount of unmarginable securities that you can buy now. You cannot buy options on margin.
  • Unsettled cash is the expected proceeds of a sale that is still pending. Some brokers let you use unsettled cash like cash at your own risk.

I'll leave the last question as an exercise to the reader.

  • 1
    Thanks! Is the total money in the account Net Liq Value, or Net Liq Value + Cash balance? – Tim Apr 16 '11 at 21:50
  • Net Liq includes cash. – AndrewS Jul 12 '13 at 20:52

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