It's more like bungee jump. Difference here is u won't know how long the string attached and how deep of the "lubang" inside..

haha...

another wave of selling, probably father of tsunami is coming

ya...shd be...i think it's like borrowing money fr broker/bank u put 10k in ur margin account...u can buy 20k of stock like tat one ar???

Yes, basically like that.

When you collateral value drop, (you previously put in ABC stock at Rm10, but now become RM 8.50 then you need top up 1.50) either you top up or force sell your holding if no top up.

This post has been edited by cherroy: Mar 10 2008, 04:50 PM

sort of. You borrow money from bank & buy : After reaching the loss limit (imposed by them) , the difference between the cut-off point & the loss has to be topped up, this is on top of the monthly interest on the borrowings.
If you can't top up , then force sell.

Yes correct, usally they have a 200% margin for you, but when sheet hits the fan, you need to cover the 20k loses and will need to top up somemore if your share drops like crazy.

Translated, you may have 10k in your account, but you use extra 10k to buy, and in the end you lost >30k, i believe for today's aftermath.

so scary! if cant afford dun buy la aiyoh......

Yes it is correct that u borrow from bank to trade and bank based on your collateral cap value to loan $ to u. If your loan to collateral/stock ratio hit the margin call percentage then u will rcv the sweet voice call from them to ask u top up your margin lor.... if did not top up then they will force sell lor...

scomi suddenly jumped fr 0.85 to 0.9....dunno who buy so much

Wow serious shit ? I could end up in deep shit in a day .. luckily didnt go for this .. and would never .. just can't take this kind of risk lol

many force sell then market drop lo

Think all the panic selling may actually be contributed by the force selling as well... especially with the limit down.

the volume is big and not healthy. alot of foreigner is selling fast

wah the volume today is crazy man
but its rebounding

this would take freaking long time to recover...

I always advise people to stay away from margin trade. I seldom see people gain with margin trade, only see a handful that manage to gain with hit and run and only use when timing is right. Others, mostly ended with losses.

sigh, FF is cabut-ing...

our market would be dull down without them, isn't...

yeah-lor. Close the computer & switch on again 1 year later.

Weird, gamuda price up even for sell transaction (red color). care to explain ?

Not so fast if I am not mistaken. Today after market close and broker/bank will generate a margin call list for those who fall under margin call and tmr they will start calling them. And they will have 1 or 2 days to top up the margin or normalized the margin a/c. If then will force sell liao. So wait for 1 to 2 days to sell more force selling for those that can't top their margin to be forced sell.....then u buy it cheap cheap lor


Unless they have a online real time monitoring system to monitor the margin call ratio, if not they (broker/bank) got to wait till end of day.

This post has been edited by optimuz: Mar 10 2008, 04:59 PM