Similar to trading account, Margin Account also enables our clients to purchase and sell securities listed on the Bursa Malaysia Securities Bhd (BMSB).
The main difference is, for margin account, SJ Securities will be offering shares margin-financing facility to qualified/eligible clients to finance their purchase of securities listed on the BMSB. That means our margin clients are able to leverage their trading/investment for short/medium/long term purpose. In order to be eligible for shares margin financing facility, clients are required to pledge cash and/or shares collateral acceptable to us. Clients' trading power will depend on the amount of collateral with us from time to time and that also means secured business to SJ Securities and dealers/remisiers.
Margin clients will be able to hold their outstanding purchases longer than retail trading account for maximum return on their investment. Complying with the FDSS rules, SJ Securities finances and settles all outstanding purchases on behalf of clients on T+2 days. In return, SJ Securities will charge them interest for their purchase contracts under financing.
For all types of margin accounts, opening a SJSEC Nominees pledged securities CDS account is mandatory.
Margin accounts can be classified as follow:
1) Conventional Margin Account
2) Short Term Margin Account
(i) SMT Account