Frequently Asked Questions
Securities Borrowing
What are the key advantages of using SBL facilities as opposed to other short selling tools?
You can enjoy direct access to the markets that you are trading. This is unlike over-the-counter products where you will be trading against the market makers. You can have up to transaction day + 1 (sales) to put in your collateral. You will not be charged a financing fee on securities pledged as collateral. There is no maintenance fee for an SBL account.
Other faq that might help you
- 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?
- How do I perform the short trade?
- 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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