12 December 2025
RISK DISCLOSURE STATEMENT FOR MARGIN LENDING
Important – Please read carefully
This document is provided to you because you are considering or have applied for a margin lending facility with Tiger Brokers (AU) Pty Limited (ABN 12 654 129 373, AFSL 530689) (“Tiger Brokers”, “we”, “us” or “our”).
Margin trading involves significant risks. You may lose more than the amount you originally deposited into your account.
1. Leverage Risk / Amplified Losses
Trading on margin involves borrowing money from Tiger Brokers. Because you only deposit a portion of the full value of the positions you take, your profits and losses are magnified. A small adverse price movement can result in substantial losses that far exceed your initial deposit.
Example: If you use 50% margin (2:1 leverage) and the value of your portfolio falls by 30%, you will lose 60% of the money you originally deposited (not just 30%).
2. You Can Lose More Than You Deposit
If the market moves against you, losses can exceed the cash and securities you have deposited. This could result in all of the securities in your account being liquidated and all proceeds and any other cash in the account being applied to your loan balance. If this does not fully cover your loan balance, your account with Tiger Brokers will be suspended.
3. Margin Calls and Forced Liquidation
You are solely responsible for monitoring your account and ensuring it always meets Tiger Brokers’ margin requirements. Tiger Brokers does not guarantee that you will be notified of a margin call prior to us taking steps to liquidate securities in your account.
If your account falls into margin call because your Excess Liquidity (as defined in the Product Disclosure Statement) is less than zero at any time:
Tiger Brokers may (and usually will) automatically liquidate positions.
Liquidations can occur at any time, including outside normal trading hours and in fast-moving or illiquid markets.
Your account will be suspended if there is any resulting deficit.
4. Liquidation May Occur at Unfavourable Prices
During volatile markets, forced liquidations may be executed at prices significantly worse than the last quoted price or the price you expect. Stop-loss orders and other conditional orders do not guarantee protection against liquidation at poor prices.
5. Interest Charges Increase Losses
You will be charged interest on the borrowed amount every day. Interested will be capitalised and added to your loan balance. If positions move against you, interest continues to accrue on the full borrowed amount and will increase your overall loss.
6. No Guarantee of Time to Deposit Additional Funds
When Tiger Brokers issues a margin call, you may be given little or no time to deposit additional cash or securities. Tiger Brokers may liquidate immediately in these circumstances if it believes it is necessary to protect its interests.
7. Concentrated Positions Increase Risk
Holding a small number of securities or large positions in a single stock dramatically increases the chance of a margin call and forced liquidation.
8. Short Selling on Margin Carries Additional Risks
Unlimited potential loss (a stock can theoretically rise indefinitely).
You may be forced to cover (buy back) the stock at much higher prices during a short squeeze.
Borrowing fees and recall risk apply.
9. Changes to Margin Requirements
Tiger Brokers may increase margin requirements at any time without prior notice, including on existing positions. This can trigger immediate margin deficiency and automatic liquidation.
10. Foreign Currency Risk
If you trade securities denominated in a foreign currency or hold foreign currency balances, exchange-rate movements can cause or worsen a margin deficiency.
11. No Negative Balance Protection for Most Clients
Except where required by law (currently only for certain retail clients in very limited circumstances), Tiger Brokers does not offer negative balance protection. You remain fully liable for any debit balance.
12. Liquidation Order and Priority
You may request a preferred liquidation order, but Tiger Brokers retains absolute discretion over which positions are closed and in what sequence. Your request is not binding in any circumstances.
13. Counterparty Risk
Your positions and collateral are held through a chain of brokers and clearing houses (including overseas entities). In the extremely unlikely event of insolvency of any entity in that chain, recovery of your assets may be delayed or incomplete.
Your Acknowledgement
By applying for or using a margin account with Tiger Brokers (AU) Pty Limited, you confirm that:
You have read and understood the Product Disclosure Statement.
You have read and fully understand the risks described above.
You accept full responsibility for monitoring your account and meeting margin requirements at all times.
You understand that Tiger Brokers may liquidate positions without providing you with a prior opportunity to deposit additional funds notice and that your account will be suspended if there is any deficit after liquidating your securities.
You are willing and able to bear the substantial financial risks of margin trading, including the risk of losing more than you have deposited.
If you do not fully understand these risks, you should not trade on margin.
RISK DISCLOSURE STATEMENT FOR SHORT SELLING
Before engaging in short selling, you should carefully read the Risk Disclosure Statement for Short Selling (“Risk Disclosure Statement”) provided by Tiger Brokers (AU) Pty Limited (“TBAU”).
The risks listed below are non-exhaustive. You should also review margin lending and short selling terms and conditions, standard margin lending facilities PDS, short selling FAQs before undertaking any short selling activities.
Market Risk
When you engage in short selling, you are borrowing securities from TBAU to sell and hope to buy the shares back at a lower price. Short selling carries a high level of risk, because the price of the financial products may increase. Since there is no limit to how high a financial product’s price can rise, the short seller’s potential losses are unlimited.
Please note, leveraged and inversed ETFs and other high risk financial products, if eligible for short selling, will expose you to a higher market risk. Please review risk disclosure statement for securities and ETFs for more details.
Recall and Buy-in Risk
If TBAU receives a recall notice from its trading counterparty, TBAU may seek to replace the borrowed stock by attempting to re-borrow the specified financial products from other trading counterparties. If TBAU is unable to do so, a formal recall will be initiated.
You agree and acknowledge in lieu of requiring you to deliver the equivalent short sell eligible stocks, TBAU may execute such recalls by buying-in the equivalent short sell eligible stocks using Volume Weighted Average Price (VWAP) orders or by transacting in the open market at the prevailing market price. These purchases are executed at TBAU’s sole discretion and without prior notice to you. and you will be solely responsible for all related costs and any losses incurred due from closing your short position.
Please note leveraged and inversed ETFs and other high risk financial products, if eligible for short selling, may have a greater likelihood of recall.
Borrowing fee
You must pay TBAU a borrowing fee, as calculated, compounded, determined, and communicated to you by TBAU. This borrowing fee is expressed as a percentage rate, which may fluctuate significantly and, at times, be substantial. The applicable rate is set and may be varied at TBAU’s sole discretion from time to time.
Certain corporate actions — including, but not limited to, mergers, tender offers, and distributions — may lead to sudden increases in the borrowing rate. For example, announced dividends often result in a reduced supply of borrowable shares and consequently higher borrow rates in the days preceding the record date.
Borrowing fees are calculated based on the market value of the borrowed securities. If the market value of the borrowed stock increases, the total borrowing fee you pay will also increase, even if the percentage borrow rate remains unchanged.
Corporate Action Liability
Short position holders are held liable to the long holder for distributions made by the company including (but not limited to) dividends (regular cash, special cash, shares), rights/warrants, and spin-off’s, mergers and tender offers. This means that you could be liable for paying TBAU in an amount equivalent to such dividend or distribution. The amount can be substantial, and you may take on significant additional economic exposure.
De-listing and Trading Halts
If a company is delisted from a public exchange or trading in its securities is halted by the listing exchange, you may be unable to close out your short position because the security is no longer traded. Nonetheless, the original loan of securities remains outstanding.
A short position in a delisted security can only be removed once the shares have been formally cancelled and all administrative processes have been completed. This process can take several days, months, or even longer.
If a stock is subject to a trading halt, the short position can only be closed once the halt is lifted. While most trading halts are temporary, some may remain in place indefinitely. During this period, you will continue to incur borrowing fees calculated on the collateral’s market value, based on the last traded closing price.
Margin call and forced liquidation risk
Short selling is subject to margin requirements. You must meet the applicable margin requirements both to open a new short position and to maintain an existing one.
Margin call risk arises when the account value, measured by Equity with Loan Value, ELV, is getting close to the maintenance margin, MM, requirement. The margin call is not issued or communicated by a phone call or any other direct contact. Instead, you will be notified through electronic alerts sent via email and/or through the Tiger Trade platform, warning that your margin account is nearing the margin requirement. Clients shall consider to take actions, including but not limited to closing or reducing positions, or transferring in additional cleared funds or securities to avoid the risk of liquidation on margin shortfall.
If you enter margin deficit, TBAU will automatically initiate liquidation of some or all positions. TBAU is not obliged to give clients an opportunity to transfer in additional funds or securities before initiating liquidation. It is your responsibility to actively monitor and manage your positions to ensure you meet all margin requirements at all times. You will be solely liable for any and all costs and losses arising from such actions.
Please refer to the standard margin lending facility PDS and margin lending and short selling terms and conditions for more information.
This document forms part of your agreement with Tiger Brokers (AU) Pty Limited and should be retained for your records.