Increase Investment Power with Share Margin Financing
We provide share margin financing to eligible Malaysians and residents. The financing limit approved is dependent on financial position as well as the type and quality of collateral pledged, which is usually in the form of cash and/or quoted shares. The shares must be listed on Bursa Malaysia and marginable to us.
Get Started with Margin Financing
Talk to us about opening an individual or corporate margin financing account today.
Frequently Asked Questions.
We provide share margin financing to eligible Malaysians and residents who are of good financial standing. The financing limit approved is dependent on financial position as well as the type and quality of collateral pledged, which is usually in the form of cash and/or quoted shares. The shares must be listed on Bursa Malaysia and marginable to us.
What is share margin financing?
In Malaysia, share margin financing is a credit facility offered by investment banks to finance the purchase of quoted securities on Bursa Malaysia (BM). Investors can engage with investment banks for these facilities by placing an acceptable collateral equal to the financing amount.
What is the benefit of share margin financing?
Here are the advantages of share margin financing;
- You can leverage your assets to boost your investment power
- Lower cost of investment financing.
- Flexible repayment methods.
- Extensive range of acceptable collateral.
What is the risk of margin trading?
Here are the risks associated with margin trading;
- Just as it has the potential to increase your returns, the potential for a bigger loss is also present. Using partly borrowed funds to invest means any decline in the value of your investment is doubly amplified as you will suffer losses in both your own leveraged assets as well as on your borrowed credit. You can even lose more than the initial deposit you put in.
- Risk facing a margin call. When your leveraged investment loss is too high or losing value, your initial equity or deposit used for the margin trade may fall below the minimum margin value set by your brokerage. You will be asked to increase the equity in your account either by depositing additional cash or sell and liquidate some of your stock.
Is margin like a loan?
Rather than a loan, a margin is similar to a collateral. A margin is the collateral that an investor has to deposit with their broker or their exchange to cover the credit risk the holder poses to the broker or the exchange.
