How is the 5% interest calculated?

The 5% APR is paid out on your average usable margin for the month.

  • Each day at approximately 5 p.m. EST, a snapshot of the usable margin in your account is taken.
    • (Usable Margin is the amount of account equity not currently being committed to maintain open positions. Usable Margin should be thought of as two things:
      1. The amount available to open NEW positions
      2. The amount that EXISTING positions can move against you before you receive a margin call.)
    • For example: if you deposit $100 into your account and do not have any open positions, your Usable Margin will be $100. This is because you are not committing any account equity to an open position.
  • This is added up and divided by the number of days in the month (provided that the account was open for the entire duration of the month).
  • Interest is paid on the average usable margin in the account for the month paying interest for each day the account was open and eligible to receive interest.
  • The maximum amount you can earn interest on is USD 50,000. However, there is no limit to the available equity or usable margin that you can have in your account.