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SNL check
Sale Not Long (SNL) check is a position check for a specific
security. This check is done for Closing orders (for example a Sell and Buy To Cover
orders are closing orders). In addition to the current order all other "closing
orders", open covered call orders and covered call positions for the specific
security are included in the SNL position check calculations. See: Available
Qty After Execution link for additional information and an example. Note: open
unexecuted Opening Orders are not included as part of the sellable position.
Real time equity check
Is an available funds check that done for Cash accounts. Note: Margin accounts are not
being checked for Available funds or Available Buying Power at this time.
Closing orders table:
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Real Time Acct Qty
Tells the user the real time account quantity for a specific account number.
This number includes close of business plus all intraday activity. Some
examples of intraday activities are executed buy or sell orders, plus any
security JE that hit the account that day.
For example: An account is long 200 shares of IBM. That day the account gets a
JE for 300 shares of IBM. The Real Time Acct Qty would be 500. If the FA had
an existing open order to sell 200 share of IBM GTC, and was attempting to
enter a sell order for 300 shares the available shares data would look like
this:
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Real Time Acct Qty:
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500
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Available Qty
Before this Order:
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300
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Available Qty
After Execution:
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0
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For accounts with Short Vs the box positions please read: The Real Time Acct Qty on the first order entry page will show the user the account’s long position. So if an account is long 400 AOL and Short 300 AOL the Real Time Acct Qty will show 400 shares long on the first order entry page. If the user continues on to the verification page the system will show the user the position that corresponds to the order that's being entered. So if we continue with our example and an FA enters a Buy to Cover order for 200 shares of AOL at MKT, the user will see the following values on the order verification page: (Provided there are no additional open orders for this security)
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Real Time Acct Qty:
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-300
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Available Qty
Before this Order:
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-300
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Available Qty
After Execution:
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-100
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Available Qty Before this Order
Start with the account's Real Time Acct Qty then reduce
that position by all open "Closing order" (example a sell
is a closing order) for the specific security and reduce it
by all executed and open covered call orders for the
underlying security. I.e. reduce the Real Time Acct Qty by
all orders and positions that encumber the security your
placing the order for.
For example:
Existing Positions: An account is long 1000 shares of IBM.
The customer is short 2 IBM Jan 105 calls.
Existing Open orders: The customer has an open order to
sell 100 shares of IBM at a Limit of 120 GTC, and an open
order to sell 1 IBM Jan 115 call at a limit of 3 GTC.
Order being entered: Is a Sell 1000 shares of IBM at MKT.
On the verification page the user would see the following
information:
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Real Time Acct Qty:
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1000
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Available Qty
Before this Order:
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600*
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Available Qty
After Execution:
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-400**
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| * |
600 is equal to: 1000 Real time acct qty - (200 shares from open call position - 100 sell order - 100 open call order) |
| ** |
-400 is equal to: 600 – 1000 shares of the new sell order |
Note: If all open orders executed this account would end up with a technical short of 400 shares. The "Available Qty Before this Order Qty" is the maximum number of shares that can be entered without the account going into a technical short position.
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Available Qty After Execution
Start with the account's Available Qty Before this Order Qty
and reduce it by the new order that's being entered. This
number represents how the account will look if all open
"Closing orders" execute for the security in question.
For example:
Existing Positions: An account is long 1000 shares of IBM. The
customer is short 2 IBM Jan 102 calls.
Existing Open orders: The customer has an open order to sell
100 shares of IBM at a Limit of 120 GTC, and an open order
to sell 1 IBM Jan 105 call at a limit of 3 GTC.
Order being entered: Sell 1000 IBM at MKT. The verification
page numbers would show the following:
Real Time Acct Qty:
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1000
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Available Qty
Before this Order:
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600*
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Available Qty
After Execution:
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-400**
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| * |
600 is equal to: 1000 Real time acct qty -
(200 shares from open call position - 100 sell
order - 100 open call order)
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| ** |
-400 is equal to: 600 – 1000 shares of the new
sell order
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Note: If all open orders executed this account would end up with a technical short of 400 shares. The "Available Qty Before this Order Qty" is the maximum size that should be entered without the account going into a technical short.
Opening Orders
Opening orders are unexecuted open orders that have equity
requirements. Opening Orders that are figured into
available fund calculations are: Buy, Sell Short, Buy
Calls to open, and Buy Puts to open. Some examples of
"Closing orders" would be Sell, Buy to Cover and Buying
calls to close.
Opening orders acct table:
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Available Funds
The "Money or Funds" that are available for trading purposes in the account. It includes Money Market funds plus Cash plus or minus any intraday Debits or Credits. Examples of intraday Debits are: executed buy orders and “Fed Funds Wires out”. And examples of intraday Credits are: executed Sell orders and “Fed Funds wires In”. (For a more detailed about the Available Funds number see the detailed formula in the blue text below)
Next will be some examples of Available Funds numbers that a user will see on the order entry verification page: (Note these numbers will only be displayed for Opening Orders in a Cash account. Equity checks are not done for margin accounts.)
a) A cash account has $15,000 in money market funds, one open buy order for 100 shares of IBM at 100 GTC and an open Sell order for 3000 shares of INTC at 35 GTC. No intraday activity or any other credits or debits and no additional open orders. The FA is currently attempting to enter an order to Buy 400 shares of CPQ at 10 GTC. The Available funds table on the order verification page would show:
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Available Funds:
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15,000
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Available Funds
Before this Order:
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5,000*
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Available Funds
After Execution:
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1,000**
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| * |
5,000 = 15,000 – 10,000 (the open buy order which is a “buy 100 shares of IBM at 100 GTC” uses up $10,000 in available funds). Note: the open sell order does not get calculated in, “Closing Orders”, that are not executed, are not counted toward the accounts available funds.
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| ** |
1,000 = 5,000 – 4,000 (the new order being entered has requirements of $4,000)
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b) In the above example if the two open orders (Buy IBM and Sell INTC) had executed and then the user entered a Buy of 400 shares of CPQ at 10 GTC. The Available Funds table on the order verification page would be:
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Available Funds:
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110,000*
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Available Funds
Before this Order:
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110,000*
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Available Funds
After Execution:
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106,000***
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| * |
110,000 = 15,000 + 105,000 – 10,000 ($15,000 Money Market funds) + (Intraday credit from sale of INTC: $105,000) – (Intraday debit from purchase of IBM: $10,000)
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| ** |
There are no unexecuted Opening Orders so this number is the same as the one above it.
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| *** |
106,000 = 110,000 – 4,000 (The new order being entered has requirements of: $4,000)
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If any of the Available Funds values are negative this means that: if all unexecuted Opening Orders execute then the account will have a funds due notice.
c) A cash account has $15,000 in money market funds. No intraday activity or any other credits or debits and no additional open orders. The FA is currently attempting to enter an order to Buy 1000 shares of CSCO at 16 GTC. The Available funds table on the order verification page would show:
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Available Funds:
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15,000
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Available Funds
Before this Order:
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15,000
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Available Funds
After Execution:
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-1,000*
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| * |
-1,000 = 15,000 – 16,000 (16,000 is the amount of money needed to purchase 1000 shares of CSCO at 16). This account will have a Funds due notice of –1,000 dollars once this order executes.
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Available Funds = Money Market Funds + Credit Balance (Unsettled & Settled) - Debit Balance (Unsettled & Settled) - Short Market Value (Settled & Unsettled) - cash requirement (for "when issued" and naked put requirement) + Pending Credit Activities (e.g. intraday incoming funds) - Pending Debit Activities (e.g., outgoing intraday funds) - intraday executed purchases + intraday executed long sales - opening (not executed) purchases
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Available Funds Before this Order
Start with Available funds then reduce this number by all open Opening Orders. I.e. Only Opening Orders (An example of an opening order is a Buy order) are counted against the accounts available funds.
Next will be some examples of Available Funds numbers that a user will see on the order entry verification page: (Note these numbers will only be displayed for Opening Orders in a Cash account. Equity checks are not done for margin accounts.)
a) A cash account has $15,000 in money market funds, one open buy order for 100 shares of IBM at 100 GTC and an open Sell order for 3000 shares of INTC at 35 GTC. No intraday activity or any other credits or debits and no additional open orders. The FA is currently attempting to enter an order to Buy 400 shares of CPQ at 10 GTC. The Available funds table on the order verification page would show:
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Available Funds:
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15,000
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Available Funds
Before this Order:
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5,000*
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Available Funds
After Execution:
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1,000**
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| * |
5,000 = 15,000 – 10,000 (the open buy order which is a “buy 100 shares of IBM at 100 GTC” uses up $10,000 in available funds). Note: the open sell order does not get calculated in, “Closing Orders”, that are not executed, are not counted toward the accounts available funds.
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| ** |
1,000 = 5,000 – 4,000 (the new order being entered has requirements of $4,000)
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b) In the above example if the two open orders (Buy IBM and Sell INTC) had executed and then the user entered a Buy of 400 shares of CPQ at 10 GTC. The Available Funds table on the order verification page would be:
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Available Funds:
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110,000*
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Available Funds
Before this Order:
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110,000**
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Available Funds
After Execution:
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106,000***
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| * |
110,000 = 15,000 + 105,000 – 10,000 ($15,000 Money Market funds) + (Intraday credit from sale of INTC: $105,000) – (Intraday debit from purchase of IBM: $10,000)
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| ** |
There are no unexecuted Opening Orders so this number is the same as the one above it.
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| *** |
106,000 = 110,000 – 4,000 (The new order being entered has requirements of: $4,000)
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If any of the Available Funds values are negative this means that: if all unexecuted Opening Orders execute then the account will have a funds due notice.
c) A cash account has $15,000 in money market funds. No intraday activity or any other credits or debits and no additional open orders. The FA is currently attempting to enter an order to Buy 1000 shares of CSCO at 16 GTC. The Available funds table on the order verification page would show:
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Available Funds:
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15,000
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Available Funds
Before this Order:
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15,000
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Available Funds
After Execution:
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-1,000*
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| * |
-1,000 = 15,000 – 16,000 (16,000 is the amount of money needed to purchase 1000 shares of CSCO at 16). This account will have a Funds due notice of –1,000 dollars once this order executes.
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Available Funds After Execution
This number represents what the account's available funds will be after all Opening Orders (an example of an opening order is a Buy order) have executed. Note: This number includes the current order that’s being entered. If this number is negative the account will have a funds due notice if all Opening Orders have execute.
Next will be some examples of Available Funds numbers that a user will see on the order entry verification page: (Note these numbers will only be displayed for Opening Orders in a Cash account. Equity checks are not done for margin accounts.)
a) A cash account has $15,000 in money market funds, one open buy order for 100 shares of IBM at 100 GTC and an open Sell order for 3000 shares of INTC at 35 GTC. No intraday activity or any other credits or debits and no additional open orders. The FA is currently attempting to enter an order to Buy 400 shares of CPQ at 10 GTC. The Available funds table on the order verification page would show:
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Available Funds:
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15,000
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Available Funds
Before this Order:
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5,000*
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Available Funds
After Execution:
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1,000**
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| * |
5,000 = 15,000 – 10,000 (the open buy order which is a “buy 100 shares of IBM at 100 GTC” uses up $10,000 in available funds). Note: the open sell order does not get calculated in, “Closing Orders”, that are not executed, are not counted toward the accounts available funds.
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| * |
1,000 = 5,000 – 4,000 (the new order being entered has requirements of $4,000)
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b) In the above example if the two open orders (Buy IBM and Sell INTC) had executed and then the user entered a Buy of 400 shares of CPQ at 10 GTC. The Available Funds table on the order verification page would be:
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Available Funds:
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110,000*
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Available Funds
Before this Order:
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110,000**
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Available Funds
After Execution:
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106,000***
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| * |
110,000 = 15,000 + 105,000 – 10,000 ($15,000 Money Market funds) + (Intraday credit from sale of INTC: $105,000) – (Intraday debit from purchase of IBM: $10,000)
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| ** |
There are no unexecuted Opening Orders so this number is the same as the one above it.
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| *** |
106,000 = 110,000 – 4,000 (The new order being entered has requirements of: $4,000)
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If any of the Available Funds values are negative this means that: if all unexecuted Opening Orders execute then the account will have a funds due notice.
c) A cash account has $15,000 in money market funds. No intraday activity or any other credits or debits and no additional open orders. The FA is currently attempting to enter an order to Buy 1000 shares of CSCO at 16 GTC. The Available funds table on the order verification page would show:
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Available Funds:
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15,000
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Available Funds
Before this Order:
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15,000
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Available Funds
After Execution:
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-1,000*
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| * |
-1,000 = 15,000 – 16,000 (16,000 is the amount of money needed to purchase 1000 shares of CSCO at 16). This account will have a Funds due notice of –1,000 dollars once this order executes.
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