Multi-Market Margin Financing
KGI Margin Financing provide clients a credit facility of up to 3.5 times of their existing capital to finance the purchase of securities by pledging cash and/or marginable securities as collateral.
Take charge of your FX exposure with our multi-currency financing facility for the purchase of stocks and shares listed on the Singapore Exchange (SGX), Hong Kong Exchange (HKSE), New York Stock Exchange (NYSE), NASDAQ Stock market (NASDAQ) and Stock Exchange of Thailand (SET).
Benefits
Minimal Initial Capital Outlay
You are able to increase your investment worth with funding of up to 3.5 times the amount of cash deposited, or up to 2.5 times the value of securities deposited, to gain potentially higher yields.
Wide selection of approved stocks and shares
Wide range of marginable list of stocks and shares quoted on SGX, HKSE, NYSE, NASDAQ and SET.
Interest computation
Interest* computation will commence only upon settlement date.
Trade online or via your Trading Representative
Hassle-free transaction and consolidated portfolio statement
1) All trades done through the Margin account will be settled promptly.
2) Monthly portfolio statement detailing all transactions.
3) Corporate Action will be handled by the company.
Opportunity to participate in the “buy-in” market
How it works
Using cash deposit as collateral (3.5x leverage)
For example, on Day 1 you deposit cash of $25,000 as collateral and purchase only $75,000 value of shares. * Assumed the shares purchased are valued at 100%.
| Day 1 | |
|---|---|
| Cash | Initial Financing |
| S$25,000 | S$75,000 |
| Total Collateral | =[S$25,000 + S$75,000 - S$25,000] =S$75,000 |
| Total Loan | =S$75,000 - S$25,000 =S$50,000 |
| Margin% | =Total Collateral/Total Loan =S$(75,000/50,000) =150% |
Subsequently on Day 2:
Based on 3.5x leverage, you can buy up till $87,500 ($25,000 x 3.5) worth of shares. Therefore, in order to maintain a minimum Margin Maintenance of 140%, client can only buy up till $12,500 (S$87,500 – S$75,000) worth of shares subsequently.
| Day 2 | |
|---|---|
| Cash | Subsequent Financing |
| S$25,000 | S$75,000 + S$12,500 |
| Total Collateral | =S$75,000 + S$12,500 =S$87,500 |
| Total Loan | =S$50,000 + S$12,500 =S$62,500 |
| Margin% | =Total Collateral/Total Loan =S$(87,500/62,500) =140% |
| Your margin percentage must be maintained ≥140% | |
Using shares as collateral (2.5x leverage)
For example, on Day 1 you place shares collateral with market value of $25,000 and bought S$50,000 value of shares. * Assumed the shares purchased are valued at 100%.
| Day 1 | |
|---|---|
| Shares | Initial Financing |
| S$25,000 | S$50,000 |
| Total Collateral | =S$25,000 + S$50,000 =S$75,000 |
| Total Loan | =S$50,000 |
| Margin% | =Total Collateral/Total Loan =S$(75,000/50,000) =150% |
Subsequently on Day 2:
Based on 2.5x leverage, you can buy up till $62,500 ($25,000 x 2.5) worth of shares. Therefore, in order to maintain a minimum Margin Maintenance of 140%, client can only buy up till $12,500 (S$62,500 – S$50,000) worth of shares subsequently.
| Day 2 | |
|---|---|
| Share | Subsequent Financing |
| S$25,000 | S$50,000 + S$12,500 |
| Total Collateral | =S$75,000 + S$12,500 =S$87,500 |
| Total Loan | =S$62,500 |
| Margin% | =Total Collateral/Total Loan =S$(87,500/62,500) =140% |
| Your margin percentage must be maintained ≥140% | |