TWS Statements Webinar - Interactive Brokers · TWS Statements Webinar Script Open Positions This section shows all open positions, the cost basis by lot, and the FIFO unrealized

TWS Statements Webinar Script

June 2007 1 TWS Statements Webinar Notes

TWS Statements Webinar

Overview ............................................................................................................. 1 Access Statements .............................................................................................. 1

Statement Archive Policy ..................................................................................... 2 Statement Sections ............................................................................................. 2

Account Information ........................................................................................... 2 Equity Summary ................................................................................................ 2 Mark to Market Performance Summary in Base Currency.......................................... 3 Realized & Unrealized Performance Summary in Base Currency................................. 3 Profit and Loss by Underlying Instrument............................................................... 4 Cash Report....................................................................................................... 5 Open Positions ................................................................................................... 6 Transactions ...................................................................................................... 7 Mark to Market P/L on Closed Positions.................................................................. 8 Interest Accruals ................................................................................................ 8 Interest Paid and Received................................................................................... 9

Optional Sections ................................................................................................ 9 Adjustments ................................................................................................................ 9 Withholding Tax ..........................................................................................................10 Transaction Tax...........................................................................................................10 Corporate Actions ........................................................................................................10 Dividends ...................................................................................................................11 Payment in Lieu of Dividends.........................................................................................11 Other Fees..................................................................................................................11 Client Fees..................................................................................................................12 Deposits/Withdrawals...................................................................................................12 Account/Brokerage Transfers.........................................................................................12

View in Excel ..................................................................................................... 13 Margin Report.................................................................................................... 13

Margin Summary .........................................................................................................13 Margin Detail ..............................................................................................................13

Trade Confirmations.......................................................................................... 14

Overview IB’s monthly and yearly statement format provides greater detail, easier viewing, and more flexibility. Enhancements include:

• Expand and contract sections with click-down detail to view individual sections and collapse redundant detail

• Profit and loss across all transactions, positions, and asset types calculated in two methodologies:

• First In, First Out (FIFO) matching opening and closing positions • Mark-to-Market (MTM)

• A performance summary by asset class that gives a quick view of an account's profitability.

• Opening and closing balances with links for easy access to balance change details • Calculation of FX translation gain/loss due to currency fluctuations for accounts with

multiple currencies.

Access Statements Statements can be accessed through TWS from the View menu or separately through the Account Management, Reports Management section

http://www.interactivebrokers.com/en/accounts/statements.php


• Multi-account structures (Advisor, Broker, Institutions) may select one or more accounts from the drop down box.

Different trading products can have different trading cut-off hours for statement purposes. For most products, the product trading hours’ cut-off coincides with the exchanges’ hours, but for some exchanges this might not be the case (e.g. CME equity and fixed income contracts have different cut-off hours).

• Monthly statements are generally available by 5 business days after the close of a month

• Annual statements available by January 31 under normal business circumstances.

Statement Archive Policy We provide web-based access to the following account statements:

• Daily account statements for 45 calendar days. • Monthly account statements for the 2 prior years. • Annual account statements for the 3 prior years.

Account statements older than this may be obtained for a processing fee of $100 for the first statement requested, plus $25 for additional statements requested at the same time.

Statement Sections Our statements were designed from the top down with summary totals at the top of the statement, opening to greater detail in each section as you work towards the bottom. Hyperlinked fields provide quick access to corresponding detail sections.

Account Information Account Information summarizes the account information with Customer type, trading permissions and base currency.

• account type (Individual, Advisor Master, Advisor Client, Institutional, etc.) • customer type (individual, partnership, etc.) • account capabilities (cash or margin) • trading permissions (stock, options, etc.) • base currency of the account

Equity Summary The Equity Summary shows all positions by asset class (stock, securities options, warrants and bonds), cash, and accruals for the current as well as the prior period.

There are no open futures positions as each night the gain or loss for futures contracts settles into cash.



• Current totals are split between long and short amounts. • Click on the current (ending cash) or prior period (starting cash) amounts to see details of

how the balances are derived. • All non-base currency amounts are converted to the base currency at the close of

period rate.

Mark to Market Performance Summary in Base Currency

The Performance Summary shows profit and loss (P&L) by asset class under two calculation methods: Mark-to-Market and First In, First Out (FIFO).

The MTM calculations for the statement period show daily profit or loss – assuming all open positions and transactions are settled at the end of the day and new positions are opened the next day.

The MTM calculations are split to simplify the presentations: calculations for transactions during the statement period and calculations for positions open at the beginning of a day.

Realized & Unrealized Performance Summary in Base Currency The most common method of determining P&L for stocks and options is First In, First Out (FIFO) where closing transactions are matched to opening transactions and a profit or loss is realized when a position is closed.



• Open positions are marked-to-market and the P&L is UNREALIZED. • REALIZED P&L is determined when closing the position by matching First In, First

Out (FIFO) transactions. • To simplify tax reporting, the realized category splits gains and losses and displays

long term, for positions held a year and a day, and short term positions held less than a year.

Commissions • For MTM calculations, commissions are not included but are displayed as a separate

line in the MTM Performance Summary. • For FIFO, commissions are included with the cost basis and sales proceeds to

determine the realized and unrealized P&L.

Profit and Loss by Underlying Instrument The Profit and Loss Report by Underlying section displays values sorted by underlying. You can find this data sorted by different criteria in other sections, as follows: • FIFO Realized P&L - this value is taken from the Transactions • FIFO Unrealized P&L - this value comes from the Open Positions section. • MTM P&L - this value comes from:

o MTM on Closed Positions section. o + MTM P&L value in the Transactions section.

• Commissions are taken from the total in the Comm/Tax column in the Transactions section.


If your positions do not have dividends this table will not appear.

MTM P/L - from Open Positions plus

MTM P/L from Transactions

FIFO Realized P/L from the Transactions section

FIFO Unrealized P/L - from the Open Positions

Commissions are taken from the total in the Comm/Tax column in the Transactions section.


Cash Report The Cash Report section details how each period's cash balance changes from the beginning of the period to the end of the period. For those statements with multiple currencies, all currencies are detailed separately and totaled in the Base Currency Summary section.


Deposits/Withdrawals table shows all activity into and out of your account.

Payment in Lieu of Dividends –If you buy a dividend paying stock on margin and we lend that stock, you don't receive dividends but instead a payment in Lieu of Dividend.

Fees –overnight position fees for unbundled futures, notes, order cancel, withdrawal, telephone order, check, stop payment, bounced check, old statement, bust/adjust, market data, and minimum commission fees.

Net Trade (includes all trades in the transaction section excluding commissions and prior day gain/loss from open futures positions)

Interest is paid and charged once a month after each month's close.

Cash Activity -- shows movement of cash between the securities and commodities account. This line will always net to zero in total.

• Because FX translation rates change from period to period, there will be differences in

the translated base currency balances. This difference is reflected in the Cash FX Translation Gain/Loss line.

Transaction Tax – stamp taxes charged in European markets.

Withholding Tax – IRS or other tax authority directs us to withhold for a customer.

Because FX translation rates change from period to period, there will be differences in the translated base currency balances. This difference is reflected in the Cash FX Translation Gain/Loss line.

• Starting Cash and Ending Cash lines represent trade date balances. We also show

settlement date balances which represent cash that has been received from a clearing organization (i.e. if you sell stock today you will not receive the proceeds for three days).

• Interest is always paid and received on settlement balances, accrued during the month

and paid after month close. A complete explanation of how interest is calculated can be found on the Interest and Financing page.

• Cash Activity shows movement of cash to/from your securities and commodities accounts. These movements are done automatically to satisfy margin requirements. In general, we will keep as much cash as possible in your securities account. This line will always net to zero in total.

• The Net Trades line shows all stock, option, futures options, and bond cash transactions as well as MTM cash settlement amounts for futures and single stock futures.

o The amount shown in Net Trade line does not include commissions.

• Exchanges outside of the US and Canada allow for the cross margining of futures and cash settled options so all

o European and Asian cash settled futures will be reflected in the commodities account

o US and Canada cash settled futures will be reflected in the securities account.

http://www.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc


Open Positions This section shows all open positions, the cost basis by lot, and the FIFO unrealized profit or loss.

• Positions are segregated by asset type, currency and symbol.

• The cost basis, closing value, and unrealized P&L for positions in a non-base currency

are also translated to the base currency using the exchange rates that were in effect on the day of the opening transaction.

• The unrealized profit or loss calculated in this section will be used in the Realized/Unrealized Performance Summary section above.



Transactions The Transaction section shows all transactions segregated by asset type and currency.

• FIFO and MTM profit and loss is shown for all realized (closed) transactions.

o Commissions are included with the cost basis and FIFO profit or loss, o For MTM profit or loss, commissions are listed as a separate line in the Mark to

Market Performance Summary above. • This section also shows a summary of how positions change from the beginning of the

period to the end of the period for each asset class in the base currency. o The change for the period consists of new transactions as well as MTM changes in

the value of the position. o If positions are held in a non-base currency, there will also be a Position FX

Translation Gain/Loss which reflects changes in value to the position due to a fluctuation in FX rates that are used to translate to the base currency.

o The Futures section will begin and end with a value of zero since all MTM fluctuations are settled into cash at the end of each trading day.

o Transaction amount, commissions/taxes, cost basis, FIFO P&L and MTM P&L for non-base currencies are all converted to the base currency in effect on the day of the transaction.



Mark to Market P/L on Closed Positions This section is segregated by asset class and currency.

• Expand / contract for details by symbol. • Just as in the Mark to Market Performance Summary section above, MTM profit and

loss is calculated in two components: o MTM gains from transactions during the statement period and o MTM gains or losses for positions that are carried into a new trading day.

• Prior MTM profit or loss not in the base currency is translated to the base currency at the exchange rate in effect on the day of the prior period calculation.

Interest Accruals Interest is paid and charged once a month after each month's close. During the month we accrue interest each day, and when interest is actually posted to the account, the daily accruals are reversed.

• The interest accruals are presented for each currency held and are translated to the base currency using the conversion rates in effect at the time of the transaction.



• Interest accruals are a balance sheet item and reflected in the Equity Summary at the top of the statement.

Interest Paid and Received When interest is paid or received after the close of each month it is reflected in the Interest Paid and Interest Received sections.

These sections are sorted by currency, are translated to the base currency, and tie to the Mark to Market Performance Summary as well as the Cash Report.

Optional Sections The following sections will appear on your statements only if there is data – i.e.: If your positions do not have dividends, the Dividend section will not appear.

Adjustments This section shows any price adjustments that were made to your account based on actual execution prices.



• Each adjustment transaction includes the trade date, quantity, price and trade amount

for both the original and adjusted trade. • A positive adjustment is debited to your account; a negative adjustment is credited.

Withholding Tax

The Withholding Tax table displays Federal withholding tax on dividends, calculated for each currency based on tax rules for that country. The description for each line also displays the amount of tax per share.

Transaction Tax Transaction Tax – stamp taxes charged in European markets.

Corporate Actions The Corporate Actions section is sorted by asset class and currency.



Dividends The Dividends section lists all dividend payments by currency. Each currency total is also displayed in your base currency. If your positions do not have dividends this table will not appear.

Payment in Lieu of Dividends If you buy a dividend-paying stock on margin and we lend that stock, you will receive Payment in Lieu of Dividend instead of the dividend. This payment is treated as ordinary income for US tax purposes.

Other Fees The Other Fees section details miscellaneous charges, (overnight position fees for unbundled futures, notes, order cancel, withdrawal, telephone order, check, stop payment, bounced check, old statement, bust/adjust, market data, and minimum commission fees) is sorted by currency, is translated to the base currency in effect on the day of the fee, and ties to the Performance Summary as well as the Cash Summary.



Client Fees Advisors and Brokers who charge their clients fees will have a Client Fee section on the master account statement.

• Commission or wrap fee revenues from the client are reflected in the Revenue column,

and commission expenses paid to IB for execution and clearing services are reflected in the Expense column.

• The net is the profit made by the advisor or broker. • This section is segregated by currency and ties to the Performance Summary and the

Cash Summary. • Fees in a non-base currency are translated to the base currency using the conversion

rate in effect on the day of the fee.

Deposits/Withdrawals The Deposits/Withdrawals table shows all activity into and out of your account.

Account/Brokerage Transfers The Account/Brokerage Transfers section shows all cash and share transactions between your IB account and an outside broker.

• Date of transfer. • From Account - account number from which the transfer originates. June 2007 12 TWS Statements Webinar Notes



• To Account - the account to which the position goes. • Description - description of the position • Cash Transfer - the value of the cash transfer. • Quantity - the share or unit quantity. For a cash transfer this field is blank. • Transfer Price - the price per share at which IB accepts the incoming transfer. • Position Transfer - the Quantity x Transfer Price

View in Excel You can view the statements in Excel: • Store the HTML statement locally on your hard-drive by clicking the File menu and then

choosing Save from the menu options. • Once the file is saved locally, open Microsoft Excel and choose the HTML file that you

saved.

Margin Report Margin Report shows margin requirements for all open single and combination positions. The report displays Available Funds (to determine if you can put on a new trade) and excess liquidity (when depleted you risk liquidations) In the TWS Account window you get real-time margin summary amounts. As of 16:15 ET each day we record your margin and equity information across all asset classes and exchanges for the Margin Report.

Margin Summary • Breaks out security and commodity amounts for Equity with Loan Value, Net Liquidation

Value and current Initial and Maintenance margin

Margin Detail

http://www.interactivebrokers.com/en/accounts/margin.php?ib_entity=llc


• View Margin Detail for each open position, including combination positions. • Margin for FX trades is broken out onto separate lines. • Total line is displayed for each currency in which you hold a position, along with the total

in your base currency. • Margin requirements details by product can be found on the Interactive Brokers web site

under Trading | Margin.

Trade Confirmations Real-time Trade Confirmations are available from Account Management. From the left navigation panel select Report Access, and then Trade confirmations.


TWS Statements Webinar - Interactive Brokers · TWS Statements Webinar Script Open Positions This section shows all open positions, the cost basis by lot, and the FIFO unrealized

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