> For the complete documentation index, see [llms.txt](https://advisorhub.syntheticfi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://advisorhub.syntheticfi.com/serving-existing-clients-deep-dive/schwab-client-view.md).

# Schwab Client View

{% hint style="info" %}

## **Schwab recognizes box spreads in their system and displays to clients as such.**

A SyntheticFi loan shows up in Schwab as a set of option positions, and the account can even show a negative value. That's normal. Tell the client ahead of time so it doesn't catch them off guard: their investments are safe and untouched, the option lines are just how the loan is represented, and the negative number is simply the loan balance, not a loss.
{% endhint %}

### What to tell the client

This is all most advisors ever need. Say this before the client logs in, or while walking through it together:

* **Your investments are safe and untouched.** The loan sits in its own positions. Your actual portfolio hasn't moved or been sold.
* **The loan shows up as option positions.** Those lines with dates are just how the loan is represented in the account.
* **A negative value is normal.** It's the loan balance, the amount borrowed, not a loss.
* **Ignore the per-line gains and losses.** They offset each other. The only number worth watching is the overall loan balance, which barely moves day to day.

### Script: explaining the view to a client

> "When you log in, you'll see a few option positions with dates on them, and the account might even show a negative number. I want to flag that now so it doesn't catch you off guard, it's completely normal. Those option lines are just how the loan is represented, and the negative number is simply the loan balance, the amount borrowed, not a loss. Don't worry about the gains or losses on any single line, they cancel each other out. Your actual investments haven't been touched or sold. The only number worth watching is the loan balance, which barely moves. If anything ever looks off, just call me, but nothing here is a problem."

{% hint style="info" %}

## **If a client asks whether this is legitimate:** 

* Schwab itself recognizes the position as a "Short Box Spread" and has published on the strategy. **You can see it in the "Margin Reqs" column in the Positions list below.**
* Point them to [Schwab: What are box spreads?](https://www.schwab.com/learn/story/what-are-box-spreads), their own custodian documents and supports it.
  {% endhint %}

***

### Reference: reading the columns

<figure><img src="/files/lmYKLRVq8eldEwzkFy56" alt=""><figcaption></figcaption></figure>

*You rarely need this level of detail for a client conversation. It's here for the times a client (or their CPA) wants to go line by line.*

Schwab shows several columns per position. Here's how to read them for a SyntheticFi loan:

<table><thead><tr><th width="162.984375">Column</th><th width="212.5625">How to interpret</th><th>Full description</th></tr></thead><tbody><tr><td>Market Value</td><td>Amount owed in the loan (principal + interest)</td><td>The current value of the loan positions, which moves toward the amount owed at expiration as interest accrues. A negative total is the loan balance, not a portfolio loss.</td></tr><tr><td>Cost Basis</td><td>Principal value of the loan</td><td>The principal value when the loan was opened. The gap between cost basis and market value reflects accrued interest, not an investment gain or loss.</td></tr><tr><td>Margin Requirement</td><td>Shows Schwab classifies this as a "short box spread"</td><td><ol><li>Shows Schwab recognizing it as the short box spread strategy.</li><li>Display the amount due at expiration (principal + full interest during the loan term).</li></ol></td></tr><tr><td>Gain/Loss</td><td>Interest charges up to date</td><td>Looks dramatic on individual legs, but the legs offset. Read the total line, not any single position.</td></tr></tbody></table>

**Complex (laddered) accounts:** Clients with loans across multiple expiration dates will see many more option lines, sometimes dozens. The principle is identical, each group of legs is one piece of the loan, and they all net together. The only number that matters is still the overall loan balance.

***

[\* Important Disclosures](/disclosures.md)


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