The new mutual fund platform 'Fundsmart' and the margin account
trading facility were launched by the Metrobank group's securities brokerage arm last week alongside the introduction of an upgraded mobile trading app.
A licensed and regulated bank, Saxo enables private and institutional clients to easily trade multiple assets from a single margin account
on multiple devices seamlessly.
All trades flow to a single multi-product, cross-collateralised, margin account
For a company with a high cost of capital, the opportunity cost of having to sideline funds into a margin account
is very substantial.
Commenting on this accreditation Mohamed Al Nuaimi, CEO, Mawarid Finance and Chairman of Al Jazeera Financial Services said, "we are delighted to be one of the few local companies which provide margin trading facility, this shall enhance the company operations and offer added value to its customers who shall be able to take finance for trading under the margin account
and hence shall increase their trading volumes and profits.
If at the end of a given day the margin account
balance falls below the required level, then additional margin must be posted overnight.
Once you set up a margin account
with your brokerage firm, the firm will lend you money, secured by your holdings there.
This offers clients to get started trading specifically on spot and forex options using one margin account
with a cutback in minimum trading volume from single standard lot to one mini lot, requiring only a minimum deposit of at least $2,000.
This indicates that margin borrowers buy more stocks on margin when they expect output growth increase in the next quarter and sell their margin account
stocks when they expect output growth decline in the next quarter.
INITIAL MARGINIt is the minimum amount that a participant must deposit in the margin account
before initiating trade in the futures market.
terms), to structure an effective VPF.
If investors borrow money to leverage their investments from their brokerage firm, or trade in securities with inherent leverage, they must set up a margin account