Identifier: C6T6L2 | Revision: 2026-10-26 | Planned study: 10–15 minutes, excluding extended practice.

Decision and objectives

Decision: Stress wealth and usable cash separately; a margin transfer is not another loss. Objectives: Aggregate losses without double-counting transfers; Separate equity marks from usable cash; Stress custody and collateral together. Prerequisite: C6T6L1.

All numerical offers, rates, prices, account chains, fees and contract parameters below are hypothetical, unless a primary document is expressly identified. They are not current executable offers or evidence that a Turkey-resident investor can access them. The assumed investor is a Turkey-resident individual outside a business, with no assumed US citizenship or tax residence; actual classification must be checked. Results are before actual tax unless a fictional tax schedule is explicitly supplied. No account, deposit or trade is required.

Mechanics

A combined portfolio needs an exposure ledger and a liquidity ledger. Market value measures wealth; withdrawable cash meets bills; collateral secures obligations. Moving cash into margin changes its location, not wealth by itself. Currency appreciation can partly offset a foreign asset fall, while a custody freeze prevents spending the resulting mark. A hedge can also fail through sign, basis, notional or funding mismatch. Extend the domestic stress method by recording each foreign entity and cash dependency.

Price and return drivers

Apply simultaneous shocks in compatible units. Multiply foreign asset and currency factors. Record custody restrictions separately from market losses, then calculate margin and cash transfers before the external payment date. Do not subtract the same futures loss twice, once from equity and again as if a top-up were a new loss. A frozen asset is not automatically worthless, but its unavailable mark cannot fund a current call.

Worked case

Start with TRY 1000000: domestic equity 400000, foreign ETF 300000, free cash 200000, futures collateral 100000. ETF falls 20% in USD while USD/TRY rises 10%; combined factor 0.8 × 1.1 = 0.88, ending 264000. Domestic equity falls 15%, ending 340000. A separate futures position loses 60000, leaving collateral 40000. Requirement rises to 120000, so transfer 80000 from free cash. A cash charge 1000 leaves free cash 119000. Total value is 340000 + 264000 + 120000 + 119000 = 843000, a loss of 157000. The transfer is not an additional loss.

Adverse case

At the same economic mark, three access states leave free cash usable at 119000, half blocked at 59500, or fully blocked at zero. A mandatory 100000 payment passes only the first. Separately, freezing half the ETF makes 132000 of its 264000 mark unavailable; that does not establish a permanent write-off. Another margin increase can compete with the bill. Before any later sale, update bids, settlement and withdrawals; a favorable mark or a custody claim does not establish same-day cash.

Practical use

Record available cash by entity, currency and date. Margin must be supplied in its required asset, not merely as a converted TRY estimate. Check holidays, FX cutoffs, withdrawal rules and custody transfer conditions. Reconcile the actual owner and account of every claim before relying on proceeds. Include the quoted spread, commission, funding, custody, conversion and exit charges applicable to the actual route. Check investor residence/status, acquisition and income dates, effective tax rules and treaty scope before applying any actual tax; these cases remain before actual tax.

Decision boundaries

Resize or retain a reserve when the combined market and access scenario fails. Reducing a gross position can be simpler than adding a hedge with another margin chain. A cash buffer has opportunity cost, which belongs in the comparison, but failure to pay a fixed liability is a different consequence. Decline exposure funded by an asset that cannot be transferred in time.

Practice and references

Exercise: cash TRY 80000, margin 40000 and other assets 180000, total 300000. Futures lose 15000; required margin becomes 50000. Other assets lose another TRY 10000. No fees or other movements occur. Calculate the top-up, free cash and final total equity. Solution: margin falls to 25000; top-up 25000 restores 50000. Free cash becomes 55000 and other assets 170000. Total is 55000 + 50000 + 170000 = 275000, a loss of 25000. The top-up relocates cash; it is not a second loss.

Takeaway: Stress wealth and usable cash separately; a margin transfer is not another loss. References: product card, formula; glossary: Usable liquidity; Custody freeze; Collateral transfer. Next: C6T6L3. Topic test.

Sources: SIPC: What SIPC Protects (retrieved 2026-10-26; Custody scope and exclusions). GIB: Investment Income Guide (retrieved 2026-10-26; Introduction and foreign income/reporting framework). SEC: Exchange Traded Funds (retrieved 2026-10-26; Structure, price and NAV). CME: Benefits of Futures Margins (retrieved 2026-10-26; Initial, maintenance and broker requirements). Revision: 2026-10-26; recheck changeable rules before publication.

Shared reference guide