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Margin requirement

Margin trading is trading with borrowed funds. Margin trading allows traders to enter into trades which size is several-fold greater than their own funds. Usage of borrowed funds allows to significantly increase both trading profits and losses. Consequently, prior to trading on margin, a customer has to carefully evaluate the risks related to margin trading and to become acquainted with the Renesource Capital’s terms and conditions.

Мargin trading on the USA equity market

Margin positions control scheme: monitoring collateral adequacy

 

Long positions:

Short positions:

Overnight margin requirements:

50 %

50 %

Intraday margin requirements:

25 %

30 %

Margin-eligible securities

Only securities with market price of at least USD 5.00 are eligible for opening long positions with borrowed funds.

Securities eligible for opening short positions

The list of securities eligible for opening short positions.

Easy to borrow securities list eligible for opening short positions (margin trading) has been updated on 12.07.2016. Up-to-date list is available upon request. Please do not hesitate to contact Capital markets, Brokerage team in case of specific questions related to short selling via email trading@renesource.com or voice desk +371 67 092 732. 

 

Usage of borrowed funds/securities

The annual USD interest rate for usage of borrowed funds/securities is 9%.

Margin trading on Russian equity market

Margin positions control scheme: monitoring margin adequacy

Restrictive margin level: (initial margin level) Treshold level of margin: (level of the forced closure)

33%

25%

Margin level


% = ((Portfolio market value - Liabilities) / Portfolio market value)*100, where

Portfolio market value = funds + value of securities in the Customer’s portfolio, included into collateral;

Liabilities = cash debt + shorted securities market value (the number of securities * the price of the last trade);

Value of securities in the Customer’s portfolio, included into collateral, may be reduced by discount factor. Values of discount factors are included into the list of collateral eligible securities.

You can receive the list of collateral eligible securities by sending a request to trading@renesource.com

Usage of borrowed funds/securities

The annual RUB interest rate for usage of borrowed funds/securities is 15%.

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.

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