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Under what circumstances will I receive a margin call?

You will receive a margin call when your equity balance falls below the required maintenance margin of your portfolio that is marked to market on a daily basis.

Equity Balance < Total Maintenance Margin for portfolio

Any shortfall will trigger a margin call, and customer would have up to 2 trading days from the date of notice to top up the margin deficit. It will be a force-liquidation call if Equity Balance drops below 5% of the Portfolio Market Value. Customer must make good the shortfall on the same day before 3 pm.

Example:

Day 1: Customer deposits S$5,000 cash. Minimum commission of S$22/US$15/HKD150 applies

Beginning of Day 1:

  1. Buy (Long) 2 lots of Share A (SGX Component Stock) @ $7.00.
    Initial Margin requirement = Maintenance margin = 20%, Commission = 0.20%, Finance Charge = 5.5% p.a.

    Market Value = $7.00 * 2,000 = $14,000

    Initial Margin requirement = 20% * $14,000 = $2,800

  2. Long 2 lots of Share B (Non component stock) @ $1.50.
    Initial Margin requirement = Maintenance Margin = 25%, Commission = 0.50%, Finance Charge = 5.5% p.a.

    Market Value = 2,000 * $1.50 = $3,000
    Initial Margin requirement = 25% * 3,000 = $750

      End of Day 1 End of Day 2 End of Day 3 End of Day 4
    End Closing Price Stock (A)
    End Closing Price Stock (B)    		 $ 7.00
    $ 1.60     		$7.50
    $ 1.20     		$6.50
    $0.80     		$5.80
    $0.50
    Total Market value of Portfolio @ End of Day
    (Stock A+ B)     		$17,200 $17,400 $14,600 $12,600
    Ledger Balance B/F $5,000.00 $4,943.29 $4,943.29 $4,943.29
    Less: Opening Commission
    (incl. GST) – Stock A
    Less: Opening Commission
    (incl. GST) – Stock B     		($29.96)

    ($26.75)*

    		$0.00 $0.00 $0.00
    Ledger Balance C/F $4,943.29 $4,943.29 $4,943.29 $4,943.29
    Less: Finance Charges (Stock A)

    Less Finance Charges
    (Stock B)

    		($1.53)

    ($0.35)

    		($3.17)

    ($0.61)

    		($4.59)

    ($0.79)

    		($5.86)

    ($0.90)

    Unrealized Profit/(Loss) – Stock A
    Unrealized Profit/(Loss) – Stock B     		$0.00
    $200.00     		$1,000.00
    ($600.00)     		($1,000.00)
    ($1,400.00)     		($2,400.00)
    ($2,000.00)
    Equity Balance $5,141.41 $5,339.51 $2,537.91 $536.53
    Maintenance Margin – Stock A
    Maintenance Margin – Stock B
    Total Maintenance Margin
    (Stock A + B)     		$2,800.00
    $800.00

    $3,600.00

    		$3,000.00
    $ 600.00

    $3,600.00

    		$2,600.00
    $400.00

    $3,000.00

    		$2,320.00
    $250.00

    $2,570.00

    Force-Liquidation Margin
    (5% of Total Portfolio Value)    		 $860.00 $870.00 $730.00 $630.00
    Margin Excess/Deficit
    (Equity Balance – MM)     		$1,541.41 $1,739.51 ($462.09) ($2,033.47)
    Margin Call No No Yes Force Liquidation

    * Min commission $25 applies

    End of Day 1 & 2: Equity Balance > MM; No Margin Call
    End Day 3: Equity Balance< MM; Margin Call
    End of Day 4: Equity Balance < Force Liquidation Margin; Force Liquidation Day

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