Margin trading is essentially borrowing funds from a broker to purchase securities such as shares. When you trade on margin by using the funds in your account as collateral, you can purchase more securities and increase your trading power as a result.
Expressed as a percentage, the margin represents the amount of funds you can have in your margin trading account.
Boost Your Trading Power
With margin trading, you can enjoy a huge boost in your ability to trade through leverage. A 50% margin effectively doubles your trading power, allowing you to invest your capital more efficiently.
Make Your Investments Work Harder
Pledging your existing equities as collateral helps your assets work harder for you.
Rev up your trading power and maximise your opportunities. At UTRADE, you can trade up to 3.5 times your cash deposit or 2.5 times the value of eligible securities.
We give you access to multiple currency share financing facilities in one account. Trade and settle your positions in our approved currencies, which include SGD, USD, HKD, AUD, JPY, EUR and GBP.
Enjoy competitive interest rates for financing when you take up a loan for margin trading.
For margin trading, we offer a broad range of stocks on the Singapore Exchange as well as selected foreign shares. Use our online platform to take charge of your investment decisions or consult our experienced trading representatives for professional assistance.
Trading on margin means using debts or borrowed funds to invest in other financial instruments. In this situation, both gains and losses can be greatly amplified.
When trading on margin, the amount of capital required to enter into the arrangement may be small relative to the value of the transaction. However, investors should be aware that even a small movement in the price of the asset can have a significantly larger impact on your investment, which may result in losses far greater than the initial capital invested.
If the market moves against the position that an investor is holding, it may result in margin calls. These are requests to place additional funds on deposit with the broker to cover the shortfall in the funds requirement level necessary to maintain the position.
If an investor is unable to provide the additional funds, the broker may sell the shares he or she owns without prior notice. In this situation, the investor is liable for all further losses incurred as a result.
When trading on margin, some investors might not have fully considered the total value of the contract they have entered into. As a result, they might fail to fully appreciate the true extent of the losses they are potentially exposed to, which may exceed their financial resources.
Open a UTRADE account today and start trading on the premier platform you deserve.
Make an appointment online.
Bring along the required documents to open a trading account.
Start trading on margin with UTRADE or contact us at 6536 9338 for further assistance.
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