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What is Allocation and how does it work?

When you’re using Margin Loan (Debit Money), your cash balance is negative, and standard interest is being applied.

By allocating an amount, you are basically announcing your intention to use that amount as Margin Loan (Debit Money) in the coming calendar month. This gives us time to prepare and plan accordingly. In return, you get the reduced interest rate.

For a detailed overview of costs and charges, see our Fee Schedule.

Accordion

Log in to your account, go to the Settings page, and select Allocation. Note that these settings are only visible if you have an Active, Trader, or Intraday account type. Once you’re on the Allocation page in the trading platform, select Add allocation. The newly added allocation will take effect of on the first day of the following calendar month unless you remove it or edit it before that. You can add an allocation in your account's default currency, but if you have Manual FX enabled, you can add allocations in foreign currencies as well. 

Please note that the rates between currencies may vary.  For a detailed overview of costs and charges, see our Fee Schedule.

You can easily remove or edit the upcoming allocations by using the trash bin or the pencil icon. Your change will take effect on the first day of the following calendar month. However, once the upcoming allocation becomes effective, it will become visible under the Current month column, and you can no longer remove or edit it for that month.  

Important to know

  • Allocation is an ongoing service. Once you add or edit an allocation, it will remain in place unless you remove it or edit it again.
  • An allocation will be applicable for a minimum of a full calendar month. Adding, editing, or removing an allocation will take effect on the first day of the following calendar month.
  • The interest is always charged on the entire amount allocated, whether it is used or not.
  • If in one calendar month, you end up using more Margin Loan (Debit Money) than you have allocated for that month, standard interest rate will be charged on the amount exceeding the allocation.
  • In case you have allocated more than we can currently lend you, you’ll be charged interest on the full amount you have allocated, even when you don’t currently have that amount of Margin Loan (Debit Money) at your disposal.
  • It is not possible to allocate more than 9x of your current net liquidity.
  • As merely a way of announcing your intention to use a certain amount of Margin Loan (Debit Money), allocating will not increase your cash balance nor grant you more margin. The actual margin available to you depends on factors such as value and composition of your portfolio. For details, consult our Investment Portfolio Risk Handbook.
  • If you want to add an allocation in a foreign currency, Manual FX must be enabled for that currency. Learn more about Currency conversion settings. Please note that the rates between currencies may vary.  For a detailed overview of costs and charges, see our Fee Schedule.
  • The existing Margin Loan (Debit Money) amount you have in a foreign currency cash account will be converted to the account default currency once you activate Auto FX again. However, our allocation in a foreign currency will stay in place, so you might need to adjust it manually.

Investování s sebou nese riziko.

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