What is a margin percentage?
Margin percentage = Equity / Debit Balance Equity refers to securities collateral value + traded securities value + outstanding buy value – outstanding sell value Debit Balance refers to the financed amount – cash collateral value + outstanding buy value – outstanding sell value + interest charged Example: Cash collateral = $150,000 Securities collateral = $100,000 Margin line available = (3 x $150,000) + (2 x $100,000) = $650,000 Margin % = ($100,000 + $650,000) ($650,000 – $150,000) = 150%
Equity refers to securities collateral value + traded securities value + outstanding buy value – outstanding sell value Debit Balance refers to the financed amount – cash collateral value + outstanding buy value – outstanding sell value + interest charged The market value of the share collateral (Singapore Dollar equivalent) is also based on the marginable securities list valuation. • More from DBS | Singapore | DBS Vickers Securities | Retail | Margin T…
