Frequently Asked Questions
Securities Borrowing
How do I perform the short trade?
There is no special platform required to sell the borrowed securities. The method of performing short trades is the same as the way you perform a normal buy / sell trade. You will sell the borrowed securities in the ready market as if you are selling your own securities. This short trade has to also be communicated to your trading representative for settlement, latest by T+1 of the sale.
Other faq that might help you
- What are the key advantages of using SBL facilities as opposed to other short selling tools?
- How do I open a SBL account with Phillip Securities?
- Do I have to sell through Phillip Securities after I have borrowed the securities from Phillip Securities?
- How many times can I leverage on my capital through using Phillip Securities’ SBL facilities?
- Can I sell directly to the highest bidder (highest buyer’s price) using SBL facilities?
- Do I need to put in any collateral after I have sold the securities?
- How do I compute the value of collaterals required (initial margin & maintenance margin) for the securities I borrowed?
- What are the securities available for borrowing?
- What happens if the securities that I have sold have corporate actions such as dividend distributions, bonus issues or rights issues?
- What do I need to take note of when I intend to short sell the securities during a corporate action entitlement (dividend / bonus / rights) period but only buy back after the ex-date?
- After I have bought back the securities, do I have to return the securities?
- What happens if there is a recall of the loaned securities?
- How is a margin call computed?
- How do I satisfy a margin call?
- Is there a maximum period I can borrow the securities?
- Is there a minimum period I can borrow the securities?
- Can I withdraw the securities borrowed?
- Can I withdraw the cash / securities collateral?
- What will be the charges incurred for a SBL loan?
- Are there any other relevant charges?
- Do I get paid for credit cash balances?
- How does a SBL transaction work?
- Do I need to disclose my Short Selling positions?
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