Margin Trading is where an investor pledges a Quoted Share Portfolio to that respective investor’s Central Depository System (CDS) account to a financial institution in order to obtain credit up to 50% of the market value of the quoted share portfolio pledged.
In order to obtain a Margin Trading facility, the investor has to fill up a Margin Trading account opening form and sign a Margin Trading agreement, providing an undertaking from the stock brokering firm pledging the investor’s Share Portfolio to the Lender. The Margin Trading agreement is a tri-partite agreement between the Lender, Investor (Borrower) and the Stock Brokering firm.
If you need further information regarding Margin Trading, please contact your investment advisor.