There is no thread on this topic and i am thinking of doing some borrowing until my money comes in to take advantage of the current financial turmoil

Let's discuss the PRO's and CON's

And experience if any.

---

Added on January 17, 2008, 2:11 pmCIMB is offering BLR+0.75%

This post has been edited by Neo18: Jan 17 2008, 02:11 PM

Dear Cherroy,

Yes, I know the risk involved... But i plan to take loan only for 2 month period until my CASH comes in. Then i plan to pay up immediately

actually i told myself this:-

for good fundamental counter, if the price comes down 10% from my cost, i will do Dollar Cost Averaging.

It happen yesterday and also was there this morning, until it rebounded.

That is why i was thinking about buying more!!! but unfortunately no bullet...

It has got nothing to do if in 2 month time, it will come down more.

transmile got no fundamental la.. i dispose liow!!!i bought because Robert Kuok bought!! not a good reason, i know!!!

i was thinking of buying Petra Perdana. I bought @RM5 it went down to 4.66..

this counter very strong fundamental la...

for those taking margin to play share.

I wanna share my experience with you.

Please do not max out your margin facility if you got no intention to top up monthly (injecting capital on a monthly basis)

example,

you have 100k, you can get 150k margin. Meaning you can trade 250k.

Please do not max out 250 in one go.. best is buy to a range of 66 to 75%.. for 250k, meaning 165k to 188k.. this is to safeguard against margin call..

2nd tip.. please allocate some money to inject into your margin facility every month.

3rd tip.. BLR is the lowest right now. the only way BLR is going is -- UP UP UP UP UP!!!

so plan and be prepared for that

for most share margin facility, you get 1.5 ratio

meaning,

if u deposit RM10k, you get 15k margin.. meaning u can trade = 10 + 15 = 25k

1. You have to apply for this facility. I don't think you need any additional criteria

2. Interest is BLR - 1.75%, you might get lower for HLE. For extra 10k, you should have stock worth 10k, fully paid off. Yes, you settle your interest everymonth, thru deduction from your current account. You are not allow to make withdrawal from current account

3. good if they give you 2 time ratio

4. Interest charge is not gone when you sell your stock. Interest and your stock at hand got no corelattion at all...

Please becareful of SMF.. if you cannot take the heat, becareful of playing with fire

Guys,

May i know anyone out there using margin financing at a better rate then BLR - 1.75%?

PB Sharelink Margin is giving that. Plan to open another account if the margin rate is more competitive

For HLebroking, you will only be dealing with their central office. no Hong Leong branch provide stock broking department or able to advise anything on share broking/margin.

Coming back to your question, I just enquire from HL last week.

I think their webpage is outdated.

you can only trade up to 1.5x
meaning, if you put in RM10k,
you can trade up to 25k (meaning 10k your money + 15k bank money)

I find their rate not very competitive,

they are giving BLR - 1%
If you trade more than 500k, then only you get BLR - 1.75%
however, for the first 3 month of opening account, you will get 10% on all your month end interest charges, to encourage you to open account

Hope that help.

For Share margin, so far, the best is still Public Bank and Maybank

u mean BLR @ 5.5?
what about total?
can get BLR - 2 %?