What is Margin?

"Margin" means borrowing money from your broker to buy stocks and using your investment portfolio as collateral. Investors generally use margin to increase their purchasing power so they can own more stocks without fully paying for them. Margin trading exposes investors to the potential for higher losses and might result in loosing more than initial trading deposit.

1. Margin Trading US Stocks.

1.1. Margin requirements:

	Long positions:	Short positions:
Overnight margin:	50 %	50 %
Intraday margin:	25 %	30 %

1.2. The list of Equities, available for margin trading:

Margin eligible securities are securities priced above USD 5.00 per share.

1.3. Short positions:

Easy-to-Borrow List.

1.4. Borrowed funds / Equities:

Borrowed funds and/or borrowed securities are charged 9% annual interest rate.

2. Russian Equities.

2.1. Margin requirements:

Initial margin level:	33%
Maintenance margin level:	25%

2.2. Margin level % = ((Portfolio Market Value – Margin Debt) / Portfolio Market Value*100, where

Portfolio Market Value = Positive Cash Balance + Market Value of Long Position in Collateral Eligible Securities;

Margin Debt = Positive (Negative Cash Balance) + Positive (Market Value of Shorted Securities);

Market Value of Long Position in Collateral Eligible Securities can be reduced by discount factor. Discount factors are available in the List of Collateral eligible securities.

2.3.The List of Collateral eligible securities you can get by sending request on trading@renesource.com

2.4. Financing Margin Positions held overnight:

Borrowed funds and/or securities in RUR are charged 15% annual interest rate.