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Margin Financing

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Contact our Customer Service at
Telp. +6221 8066 8585
Email to cs@maybank-ke.co.id

Contact our Helpdesk Online Trading (KE Trade) at
Telp. +6221 8066 8686
Email to
helpdesk-ketrade@maybank-ke.co.id

Visit our Office at
Sentral Senayan III Building 22nd
Jl. Asia Afrika No. 8,
Gelora Bung Karno, Senayan
Jakarta 10270, Indonesia
Telp. +6221 8066 8500
Fax.  +6221 8066 8501

  • Overview
  • HOW IT WORKS
  • HOW MARGIN CALL WORKS
  • MARGINABLE SECURITIES
  • Risks
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?
  • Maybank Kim Eng's Margin Financing Facility lets you seize and maximise your trading opportunities.

    • Overview

      Overview

      Why use margin financing facility?

      • Purchase power of investors towards stocks may increase.
      • With lower interests compared to regular accounts, of 17% per annual.
      • Transactions are leveraged compared with the initial guarantee.

      Example of the differences between Margin Account and Regular Account: 

       

      Margin Account

       

      Regular Account

      With stock deposit of IDR 200,000,000 and stock valuation of 100%, clients will receive leverage facility up to a maximum of IDR 400,000,000.

       

      With stock deposit of IDR 200,000,000 and stock valuation of 80%, clients will receive leverage facility up to a maximum of IDR 160,000,000.

      Late fees at 17%.

       

      Late fees at 22%.

      Failing to deposit funds T+5 will not prompt force selling.

       

      Failing to deposit funds T+5 will prompt force selling.


    Not yet a client?
  • Maybank Kim Eng Securities has some requirements to open a Margin account 

    • How It Works

      How It Works

      Requirements in opening a margin account at Maybank Kim Eng Securities:

      • Own a regular account at Maybank Kim Eng Securities for 1 (one) month and have carried out at least 20 (twenty) transactions.
      • Own collateral value of at least IDR 200,000,000 (two hundred million rupiah) or 200% (two hundred percent) of the value of securities purchased during transaction or, depending on which is of higher value.
      • Securities requirements that are transactional with the completed securities transactions and can be used as Collateral Financing as established by the Indonesia Stock Exchange as according to the regulations of the Indonesia Stock Exchange in Financial Services Authority (formerly Bapepam) regulation no V.D.6. Margin Transaction Facilities Distribution.

    Not yet a client?
  • Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

    • What is Margin Call?
    • Financing Ratio
    • How to count margin ratio?
    • How to return the ratio to 65%?

      What is Margin Call?

      Margin call is a percentage limit that necessitates the Client to increase additional deposited cash, as a result of the decline in stock prices owned (in this case the ratio as determined by the IDX is 65%).

       

      Financing Ratio

      Margin Ratio is the comparison between the total value of Financing Facility utilized by the Client for Margin Transaction with Collateral Financing value (if the value of Securities are in accordance with the Eligible List of Securities Guaranteed by the Corporation) submitted by the Client to PT Maybank Kim Eng Securities (PT MKES). 

      How to count margin ratio?

      How to count margin ratio:

      Net total of stock purchase transaction ⁄ The total number of stocks × 100

      For example:

      Initial Deposit                                      : IDR 200,000,000

      Total stock purchase transaction           : IDR 550,000,000

      Net total of stock purchase transaction  : 550,000,000 – 200,000,000 (Initial deposit) = 350,000,000

      Margin Ratio                                        : 350,000,000 ⁄ 550,000,000 × 100 = 63.64%


      Illustration:

      • Since the margin ratio is still at 63.64%, Client is able to purchase stocks up to the maximum limit, which is the margin ratio of 65%.
      • How to count maximum stock purchase at 65% ratio: 

      Margin financing - (Total stock purchase × the maximum margin ratio) ⁄ 1 - the maximum margin ratio

      = 350,000,000 - (500,000,000 × 0.65) ⁄ 1 - 0.65

      = 350,000,000 - 375,500,000 ⁄ 0.35

      = (7,500,000) ⁄ 0.35

      = (21,428,571)

      From the information above, we are able to figure out the remaining limit unused and can be utilized for stock purchases which is IDR 21,428,571 or as many as the maximum leverage facility approved, depending  on which is lower.

      • If the submitted value of purchase exceed the maximum limit, for example as many as
        IDR 24.500.000,- the system will automatically reject the entry of stocks for exceeding the maximum ratio limit. 

       

      How to return the ratio to 65%?

      There are two ways to return margin ratio to 65%:

      1. Deposit funds/ marginable stocks

      In the case of stocks declining causing an increase of ratio to over 65%, the Client must deposit funds or marginable stocks to return the ratio to 65%.

      Example:

      Initial deposit                                         : IDR 200,000,000

      Total stock purchase transaction              : IDR 550,000,000

      Net total of stock purchase transaction     : 550,000,000 – 200,000,000 (Initial deposit)

       = 350,000,000

      Value of stock price decline to 10%:

      = 550,000,000 (Total stock purchase transaction) x 10% (stock decline)

              = 55,000,000

      Value of stock price after 10% decline:    

      = 550,000,000 (total stock purchase transaction) - 55,000,000 (stock decline)

      = 495,000,000

      Margin ratio after stock decline: 

      Net total of stock purchase transaction ⁄ Total value of stock × 100

      = 350,000,000 ⁄ 495,000,000 × 100 = 70%

      Illustration:

      • Due to stock decline of 10% (IDR 55,000,000,-), then the ration increases to 70%, the total value of stocks initially purchased of IDR 550,000,000,- decreases to IDR 495,000,000
      • In order to reduce the margin ratio to 65%, the Client must top up funds or deposit marginable shares or carry out forced sell.

      How to count required top up funds when margin ratio exceeds 65%:

      Net total of stock purchase transaction – (Value of stock price after decline x maximum margin ratio)

      = 350,000,000 – (495,000,000 x 0.65)

      = 350,000,000 – 321,750,000

      = 28,250,000

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock price decline, Client must top up funds of IDR 28,250,000 (not inclusive of fees).

      After top up funds of IDR 28,250,000 margin ratio will return to 65%. The calculation is as  follows:

      350,000,000 - 28,250,000 ⁄ 495,000,000 × 100 = 65

      How to count amount of shares deposit needed when margin ratio exceeds 65%:

      Net total of stock purchased / 65% - Value of stock after declined / 100%

      = 350,000,000 / 65% - 495,000,000 / 100%

      = 538.461.538 – 495.000.000

      = 43.461.538

      Illustration:

      • From the explanation above, we are able to gather than due to 10% stock price decline, Client must deposit marginable shares of IDR 43,461,538 (not inclusive of fees).
      • After stock deposit of IDR 43,461,538 then the total number of shares will be as follows: 495,000,000 (Value of stock price after decline) + 43,461,538 = IDR 538,461,538
      • After stock deposit of IDR 43,461,538 then the margin ratio will return to 65%. The calculation is as follows: 

      350,000,000 / 495,000,000 + 43,461,538 x 100

      = 350,000,000 / 538,461,538 x 100

      = 65

       

      2. Forced sell

      If the margin ratio is above the maximum limit (65%) and Client fails to top up funds or deposit for more than 3 (three) days, then Client will be charged by forced sell. How to count the amount of forced sell required when margin ratio exceeds 65%:

      Amount of financing - (Collateral pledge x 0.65) / 1 - 0.65

      = 350,000,000 - (495,000,000 x 0.65) / 0.35

      = 350,000,000 -321,750,000 / 0.35

      = 28,250,000 / 0.35

      = 80,714,285

      Illustration:

      • From the explanation above, we are able to gather that due to 10% stock decline, Client must make a deposit of IDR 28,250,000 (not inclusive of fees), or deposit shares of IDR 43,461,538 should the Client fail to top up funds or deposit for over 3 (three) days, then total forced sell which will be charged from the Client’s margin account will be IDR 80,714,285 (not inclusive of fees).
      • After forced sell of IDR 80,714,285 then the margin ratio will return to 65%. Calculations are as follows: 

      350,000,000 - 80,714,285 / 495,000,000 - 80,714,285

      = 65%

    Not yet a client?
  • Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

    • Marginable Securities

      Marginable Securities

      Following month Marginable Securities are issued by the Indonesia Stock Exchange every end of the month before. 

      Percentage

       

      Regulated by IDX

       

      Trigger Limits

      For Compliance

       

      Loan/Collateral

      Initial Margin

       

      50%

      Margin Call

       

      65%

      Forced Selling

       

      80% or 3 days consecutive in Margin Call status

      Convention used

       

      X (with collateral valued at 100% of market value)

      1. If the value of Collateral decreases thus the leverage values exceeding 65% of the Collateral total values, then the Securities company is required to ask the client to fulfill the Collateral Request, so that the leverage value does not exceed 65% of the Collateral value.
      2. With margin financing facilities, clients do not need to top up funds or force sell on the 5th day as for regular accounts, unless margin ratio exceeds 65%.
      3. Actual value of shares are priced daily at the last done price of the previous market day
      4. Kindly contact your Investment Consultant or our Customer Service should you require any assistance.

    Not yet a client?
  • These are the major risks involve in margin trading

    • Leverage
    • Margin calls
    • Over-exposure and overtrading
    • Track Record
    • Electronic Trading

      Leverage

      Margin financing is a leverage product. Its risk and return profiles are magnified several times. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact which may result in losses that are in excess of the initial margin/capital invested.

      Margin calls

      If the market moves against the position that you are holding, it may result in margin calls or requests to place additional funds on deposit with the company to cover the shortfall in the margin requirement level to maintain the position. 

      If you are unable to put in the additional funds, your broker may close out the position without prior notice to you. In addition, you will still be liable for any further losses that may result from this.

      Over-exposure and overtrading

      Investors often look only at the margin required and often fail to appreciate and take into account the full contract value. When trading in a large number of contracts, the total potential exposure of such contracts may be significantly beyond the investor's financial resources.

      Track Record

      Clients that are able to gain margin facility are Clients that have owned a Regular Account for 1 month and have completed a minimum of 20 transactions.

      Electronic Trading

      What are the electronic trading risks which I need to take note of?

      • Password
        Always keep your internet trading password confidential and change it regularly. Clear your browser’s cache and history after each session so that your account information is removed. You are advised not to use the “Auto Complete” function of your browser to save your User ID and Password as this function stores and lists possible matches from entries that you have typed previously.
      • Virus, Spywares and Adwares
        Always install your computer/mobile with the latest anti-virus software and spyware program. Regularly scan your computer/mobile to quarantine and delete any Virus / Spyware / Adware that may be present. Avoid downloading programs and email attachments from suspicious unknown sources.
      • Phishing
        Phishing is an act of acquiring sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. It is typically carried out by email or instant messaging, and often directs users to enter details at a website.
        NEVER reveal your password to anyone. Be suspicious of any email or instant message asking you to provide sensitive account information. If you receive such emails or instant message, do not reply or click on the links in the email or instant message.
      • Orders
        In the electronic trading world, you may encounter situations such as being unable to withdraw erroneous orders in time due to the speed of the internet connection or experience delays in order transmission and confirmation of order execution.

    Not yet a client?