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 STOCK MARKET DISCUSSION V132, Everyone Huat!

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jasontoh
post Jun 25 2013, 03:42 PM

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QUOTE(simplesmile @ Jun 25 2013, 03:01 PM)
No. The share financing or margin financing is not 2-3x of cash value. The financier will give you an approved limit. Example, 100k. You cannot borrow more than 100k. But at the same time, you don't need to use all the 100k. you can use 0, 20k, 45k.... up to you. It's like an overdraft ready for you to use.

They have certain rules like earlier example, the margin must not be more than 60% of the portfolio, or collateral. So, if you deposit 10k and buy 50k of stock, this means you borrow 40k margin. Then 40/50 = 80%... above the 60% limit. Financier will ask you to top up the collateral with cash or sell.
If you deposit 10k and buy 15k stock, this means you borrow 5k. So 5/15 = 33%. This is below the approved limit so there is no margin call. Is considered the bank loan you money to buy share. This amount will charge you interest.

Beware also that not all the stocks is valued at 100%. For example, I buy ABC share and bank only take 80% of it's value as collateral. So if market price for my ABC stock is 50k, bank will only assume it is worth 40k when calculating whether I have breached the margin limit or not.
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rclxub.gif
Dunno why wanna make life so difficult?
jasontoh
post Jun 25 2013, 03:57 PM

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QUOTE(PlayMaker` @ Jun 25 2013, 03:56 PM)
To raise more fund to buy share when he/she is out of cash already?  hmm.gif
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Looks more like raising fun than fund. There are better ways to raise fund with easier calculation.
jasontoh
post Jun 25 2013, 04:50 PM

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QUOTE(PlayMaker` @ Jun 25 2013, 04:42 PM)
high chance tomorrow market will rebound.... seems like many good news coming out....
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What are the good news that is coming out? Mind sharing? hmm.gif
jasontoh
post Jun 25 2013, 04:57 PM

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QUOTE(PlayMaker` @ Jun 25 2013, 04:56 PM)
Bro, you can get some news from The Edge website there. And currently EU share market at this moment are all in "Hulk" mode if im not mistaken....
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Thanks. China QE. Another 3 years of bull run can continue rclxm9.gif rclxm9.gif
jasontoh
post Jun 25 2013, 10:09 PM

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QUOTE(cwhong @ Jun 25 2013, 08:52 PM)
Three country shares! Maybe four if include US, can monitor meh? hmm.gif
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Buy and then don't care. Only check the performance 10 years down the road biggrin.gif
jasontoh
post Jun 25 2013, 10:12 PM

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QUOTE(cherroy @ Jun 25 2013, 10:07 PM)
Data better, faster the QE tapering...  biggrin.gif
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Now wait China QE biggrin.gif
jasontoh
post Jun 26 2013, 10:14 AM

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QUOTE(Pink Spider @ Jun 26 2013, 10:12 AM)
Good thing is their payout ratio less than 50%, got room for increasing payout and/or special divvy icon_idea.gif
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I will Q at limit down today tongue.gif
jasontoh
post Jun 26 2013, 10:28 AM

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QUOTE(Pink Spider @ Jun 26 2013, 10:17 AM)
4.20 means below 3.00 doh.gif
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Anyway, I'm just kidding. Will raise fund first, while Q at RM4, maybe tomorrow or Friday, depending on how US + China QE outcome. My strategy is buy 2 lots first, then Q remaining at limit down. Sort of DCA kind of strategy biggrin.gif

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