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Share Financing

Optimise your trading opportunities with our power-packed features.

 

From being the first local broking house to offer same-day trading, to giving our customers more control over their investment direction with the Share Financing Simulator, there is always reason to celebrate with OCBC Securities Share Financing.

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  Benefits of OCBC Securities Share Financing

Take advantage of market opportunities to reap greater returns

 

One of the widest list of marginable securities
We now accept over 1,000 listed securities from Singapore, Malaysia, Hong Kong and United States of America. Deposit them with us and we will multiply up to 2.5 times the value of your shares to boost your investment power.

 

Share Financing Simulator
A first in the industry, this is an online tool that lets you take control over your investment direction by allowing you to determine your purchasing power, prepare for different market scenarios and better manage your portfolio risk.

More investment power with less capital
Whether you have a position to pay or are planning to buy into a market dip, OCBC Share Financing allows greater purchasing power with less capital outlay. OCBC Share Financing will allow you to buy up to 2.5* times the value of your shares. If you choose to deposit cash, we will multiply your investment capital by up to 3.5* times, effectively boosting your investment power and potential returns.

 

Same-day trading
OCBC Share Financing lets you start trading on the same day** you open your account with shares from your Central Depository Account or cash deposits. So you can take advantage of opportunities in the stock market as soon as you discover them.

 

Trade online or with broker
OCBC Share Financing gives you the flexibility to trade via our Internet trading portal, iOCBC or with your broker. That way, you will never miss out on time-critical opportunities.

  Share Financing Simulator

At OCBC Securities, we understand that knowing when and where to invest is key. To reduce the guesswork involved, we have developed an online share financing simulator (not applicable for ShareInvest) that gives you better visibility of your investment risks and opportunities. Now you have greater control and confidence when making investment decisions.
 
Investors used to be dependent on their financiers to advice the margin percentage. Now, with the online Share Financing simulator, you are able to get that information anytime of the day.
 
As an online tool residing within iOCBC, it allows Share Financing customers to simulate their margin percentage (ratio of Share Value over Outstanding Loan) and make quicker informed decisions.
 
All our Trading Representatives (TR) are equipped with the Share Financing Simulator of your share financing account too. They are only 1 phone call away and more than happy to help you generate various scenarios to make informed investment decisions.
 
Tell me more about the Share Financing Simulator.

  How Share Financing works

Here's how Share Financing multiplies your investment value:

By 2.5 times with share collaterals:

 

Share

= $10,000

Purchasing Amount

= $25,000 (2.5 times)

Margin Percentage

= Total Share Value / Loan Amount

 

= ($10,000 + $25,000) / $25,000

 

 

By 3.5 times with cash collaterals:

 

Cash

= $10,000

Purchasing Amount

= $35,000 (3.5 times)

Margin Percentage

= Total Share Value / Loan Amount

 

= $35,000 / ($35,000 - $10,000)

 

= 140%

  How Share Financing Margin Call works

As illustrated above, the Margin Percentage is dependent on the Total Share Value. Should the share price decline, the Margin Percentage drops accordingly. When the Margin Percentage falls below the 140% mark, you will need to bring it back to this level by either liquidating some or all of your shares or by furnishing additional collateral. We will advise you to do so by issuing a Margin Call notice.

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  Multi-Currency Share Financing

Control foreign exchange exposure when you finance your share trading.

 

Optimise your opportunities and control your FX exposure with OCBC Securities Share Financing when trading in SGX, HKEx, Bursa Malaysia, NYSE, NASDAQ and AMEX.

 

With our new Multi-Currency feature, you’ll enjoy:

  • Choice of financing in either SGD or the traded currency – HKD, USD or AUD
  • Better control over exchange rate exposure
  • Savings on currency conversion costs
  • Convenience of one consolidated statement for different currencies

 

Tell me more about the Multi-Currency Share Financing.

  ShareInvest

Have the best of both worlds - Enjoy up to 7x your trading power

 

An innovative partnership between OCBC EasiCredit and Share Financing gives you cash to invest and then multiplying it for greater trading power in a simple and seamless way. Now you’ll never miss an investment opportunity again. Click here to find out more.

  Risks

Share Financing is a secured revolving credit line backed by cash or shares. Like any debt tool, share financing, if used properly, can boost one’s wealth over time or bring about financial losses. With share financing, you can leverage with cash or capitalise on your idle share asset, such as shares sitting in your Central Depository (or CDP) account, to buy more shares. This minimizes your investment outlay since you do not have to lock up these monies, which may be earmarked for other purposes.

 

Before trading securities in a share financing account, you should carefully review the share financing agreement provided by OCBC Securities Private Limited (“OSPL”). Consult OSPL regarding any questions or concerns you may have with your margin accounts.

 

Leverage
Like any leverage products, the contract value traded can be several times greater than the margin funds or collaterals deposited with the broking house.  With leverage, it also means that the risk and return are similarly magnified several times.

 

Margin calls
A decline in the value of securities collateralized in your share financing account may result in margin calls or requests to place additional funds on deposit with the broker to cover the short fall in the margin requirement level to maintain the position. In the case when an investor is unable to put in the additional funds, the broker may close out the position. In addition, the holder will still be liable for any further losses that may have resulted from the position being closed out.

 

Find out more about Share Financing!

 

For more information, contact us today!

* Clients are cautioned against the use of maximum credit limit. This will provide a margin for any decline in the value of shares.

 

** Clients who submit applications before 2pm can trade from 3pm on the same day. Clients who submit applications after 2pm can trade on the morning of the next trading day. Terms and conditions apply.

 

Risk Warning: An investment in securities is subject to investment risks, including the possible loss of the principal amount invested. The availability of this product is subject to the depositing of margins in the form of acceptable collateral or instrument(s), whether by cash or such securities/instruments permissible under the existing regulations. The proposed transaction herein (if any) is subject to the final expression of the terms. No representation or warranty whatsoever in respect of any information provided herein is given by OCBC Securities. OCBC Securities shall not be responsible or liable for any loss or damage arising directly/indirectly as a result of any person acting or any information provided herein.

IMPORTANT NOTES FOR SHARE FINANCING

Borrowing to finance the trading of securities (leveraging/gearing) carries a high degree of risk. If the value of the collaterals declines substantially, falling below the maintenance margin requirement, you may be called upon to deposit substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account.

 

Disclaimer

Trading in securities can be very risky, and the customer may lose all or more than the amount invested or deposited. This is particularly so when the customer needs to i) make his or her own trading decisions and ii) ensure each trade is specifically suitable for him or her – the only basis for any trading through or with OCBC Securities Private Limited (“OSPL”).  The information provided herein is intended for general circulation/discussion purposes only and may not be published or circulated (in whole/in part) without our written consent. It does not take into account the specific investment objectives, financial situation or particular needs (collectively “Objectives”) of any particular person. Please seek advice from an independent financial adviser regarding the suitability of any trade or investment product taking into account your Objectives before making a commitment to trade or purchase the investment product. If you choose not to seek independent financial advice, please consider whether the trade or product in question is suitable for you. This does not constitute an offer/solicitation to buy/sell/subscribe for any investment products or to participate in any particular trading or investment strategy. Any proposed transaction is subject to the final expression of the terms in the definitive agreement/confirmation. No representation or warranty whatsoever (including without limitation any representation or warranty as to accuracy, usefulness, adequacy, timeliness or completeness) in respect of any information (including without limitation any statement, figures, opinion, view or estimate) provided herein is given by OSPL and it should not be relied upon as such. OSPL does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice. OSPL shall not be responsible or liable for any loss or damage whatsoever arising directly/indirectly howsoever in connection with or as a result of any person acting on any information provided herein.

 

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