Financing
Quantum
We
provide 70% financing for ‘A’ grade shares and 50% financing for
‘B’ grade shares. Shares graded as ‘C’ will not be
marginable. Please refer to share list for ‘A’ and ‘B’
grading. Shares not mentioned in ‘A’ or ‘B’ list are
considered ‘C’ grading. The list of marginable securities will
be made available to you when your margin trading account is
approved.
Margin
Requirement
Margin
ratio = Collateral / Ledger >= 140%
Collateral
refers to the value of the securities held in the account after
accounting for all outstanding buy and sell trades. To obtain the
collateral value of the securities, the value of ‘A’ shares will
have to be multiplied by a price factor of 1.00, and ‘B’ shares
multiplied by a price factor of 0.70. Ledger refers to the amount of
loan utilized.
Example:
A
customer deposits S$10,000 cash and S$10,000 worth of ‘A’
shares, and buys S$31,250 worth of ‘B’ shares. Assuming market
prices remain stable.
Collateral:
‘A’ share deposited: S$10,000 x 1.00 (price factor) =
S$10,000
‘B’ share purchased: S$31,250 x 0.70 (price factor) =
S$21,875
Total collateral: S$10,000 + S$ 21,875 = S$31,875
Ledger:
Cash deposited: -S$10,000 (reduces the ledger amount)
‘B’ share purchased: S$31,250
Total ledger: -S$10,000 + S$31,250 = S$21,250
Margin
Ratio = Collateral / Ledger
= 31,875 / 21,250
= 150 % (ratio is within limits)
Margin
Calls
A
margin call may occur when the market value of your shares fall,
causing the margin ratio to fall below 140%. If the margin ratio
falls below 140% but is above or equal to 130%, you have 3 market
days including the date of notice to restore the margin ratio to
140%. You can do so by depositing cash, shares or by liquidating
some of the securities. If the margin ratio falls below 130%, you
would have to restore the margin ratio to 140% on the same day of
notice before 3.00 p.m. On
the other hand, if the value of your securities increases, your
purchasing power will also increase.
Share
Deposition
All
securities transacted through this margin account will be cleared
through the Phillip Nominees Account. All share purchases and
subsequent sales must be conducted through this account.
Multi-currency
Facility (US$/HK$/RM$/JPY/AUD/GBP) – Optional
As an added trading advantage, this account is able to provide multi-currency facility. For foreign currency denominated contracts (US$, HK$, RM$, JPY, AUD, GBP), settlement will take place in the traded currency or SGD. Respective currency accounts must, however, have sufficient funds to avoid incurring interest on debit balances. Rates on debit balances are as follows:
|
Currency
|
Interest
on debit balance
|
|
SGD
|
6.00%
p.a.
|
|
HKD
|
9.25%
p.a.
|
|
USD
|
7.00%
p.a.
|
|
AUD
|
8.75%
p.a.
|
|
GBP
|
4.50%
p.a.
|
|
JPY*
|
4.20%
p.a.
|
|
MYR
|
No
debit balance allowed
|
*Withdrawal and deposit of JPY, AUD and GBP by way of TT only.
Monthly
Statement
Paper
statements will be mailed to you monthly. If you wish to save the
environment or enjoy greater convenience, you may opt to receive
monthly statements by emails (E-statements) instead. To opt for
E-statements, kindly follow the steps below:
1.
Log
in to your POEMS with your account number and password
2.
Click
on Stocks > acct mgmt > update particulars
3.
Scroll
down to <E-statement particulars>
4.
Enter
the email address to which you wish to receive your E-statements.
5.
The
monthly statement send to you will be password protected, choose the
password you wish to use for your monthly statement, the password
must be different from the one you use to log in to your POEMS.
6.
Click
on the update button.
Upon
completing the steps above, monthly statements will be sent to you
by email. We will stop sending paper statements.
Withdrawal
Sale
proceeds and contra gains will be credited into the margin account.
The amount that may be withdrawn is based on the Available Cash.
Withdrawals in excess of CR balances will nevertheless be considered
as a loan.
|
