What are the conditions set by RHB for getting th overdraft? They look at just the shares you have in hand?

I've a Non-Margin Tempatan a/c toput cash in for online trading.But i could not seem to transfer the money out of this tranding a/c tomy savings(both ATM and online not working) anyone has same prob?

Investing via share margin may coz double the risk. half cent tots only.

funny that u should say that. Go back and read the first post and u can see someone applying for SMF, while another person is saying how risky it is. If he had gone ahead with his SMF. I bet now he would have easily tripled his cash.

Some risks are definitely worth taking, but maybe not while the market is topping new highs no?

Don't let the junior know it all's tell u what works and doesnt, because they really have no idea.

OMG, guys, i just noticed my dividend that i received recently has a RM 2.50 charged! and it doesnt even tell you its fees charged..

i noticed when i see the tax cert for dividend and compare the total amount receivable and the the amount that has been deposited in my account...what the.. RM 2.50 charged each time a payment of dividend.. no wonder they get so much profit !

Investing on margins is the best that can happen to you if you can get it.
You can leverage your capital to the fullest for maximum profit.
Every investment must have its own exit plan. If you just follow that plan it should be ok otherwise you are having a wrong plan.

Some experts are talking about a second economy dip early 2010. After missing out on the dip in early 2009, this time around I am eager not to miss the 2010 dip (if it ever happens).

Some of you have taken out share margin financing and bought stocks on the cheap. And I believe these people have made handsome capital gains. I have some questions about share margin financing.

1. Is it a requirement to transfer my existing shares to the bank offering me the share margin financing facility? Can I get any facility without transferring my existing shares?
2. If I bank in cash as my collateral, can i use the CASH + Margin for trading, or just allowed to use the Margin only?
3. How much margin can I get with lets say 10k cash & 100k stocks as collateral?
4. Is the interest rate BLR minus, or BLR plus? which bank offers the cheapest rate?
5. Is share margin financing the same as share financing?
6. What's the opposite of a share cash account?

This post has been edited by simplesmile: Nov 28 2009, 12:54 PM

Q1...No need you may need to open up another CDS A/c just for the margin A/C

Q2. Yes.. cash + margin... CIMB investment BB give 60% margin
eg: If you bank in 40K cash you can trade 100K
or you deposit 40K of security value you can trade another 60K (NB: in CIMB Security value is determine by the the bank... blue chip are taken in 100% of the closing but some lake MSPORTs is only accepted at 80% of closing and cap to RM0.85 and some like AUTOAIR have sero security value)
Q3 for 10k cash you should get RM25K
100K stock depend on what stock. You may get between 150K to Zero more( if all the stock blue Chips like CIMB or SIME you should get 150K more if all are SAAG or a like you may get very little.)
Q4. About BLR that shouldn't bother you they pay small interest on debit balance.
you want to know more call CIMB IBB at 603 2084 9802/03/04/05
Q5 and Q6 too technical for me...

This post has been edited by rosdi1: Nov 28 2009, 02:53 PM

Thanks for taking the time to answer me.

For Q2: If I bank in 40k cash, I can trade 100k. Do I have to settle this 100k on T+3? Or can I just carry on the loan and just pay the interest?

yes you can use the 100K don't have to worry about T+3.
( but 100k security value can be less than real 100K if you don't buy the blue chip. For example if you buy MSPORTS you can only buy 80K worth)

in my case I never have problem since I deposit all my stock investment into the margin account and I only take 25% to 30% margin of the whole stock value.(even when they are willing to give me double the amount)

This post has been edited by rosdi1: Nov 28 2009, 04:33 PM

i see. thanks for the explanation.

please don't.

Safe investment rule no. 5: Use only money you do not need to feed yourself and family.

ya don... u never know what can happen here, ONLY buy stocks with excess money. Because stocks will not only rise but also will fall, and the more u buy, the more u earn or ..loss.

Margin is very dangerous if u don get mentally prepared, u can be rich or u can be bankrupt, so no joke issue here, think and play very carefully my fren...

This post has been edited by pete999: Nov 30 2009, 09:21 PM

im also planning to apply personal loan just for buying stock, since share margin need colateral 50k.

This post has been edited by mmusang: Nov 30 2009, 10:22 PM

Where to get the best deal now?

Totally agreed..
It is playing with bombs and explosive..

If I'm not mistaken, CIMB is currently offering BLR-2.

A margin is more like a tool.
Any tool used improperly will hurt the user.

Got this from CIMB

Collaterals : Quoted Share, Cash or Fixed Deposit
Margin of Financing : Up to 60%
Financing Amount : Min: RM50,000 Max: RM5 million

What does this portion mean? If I want to borrow RM50,000 then I must put in cash of RM83,333? Then I get financing of RM83,333 x 60% = RM50,000 ?

If you want to have RM50,000 in your margin trading account, at least need around 25k asset with them (I refer to PB Bank).. In cash, fixed deposit, current shares holdings and others..

Nope, you just need securities worth RM83,333 but it is subject to their capping as not all shares are valued at 100% of its closing price.
i.e. PBB maybe be valued or 100% while TALAM may be valued at 30%.