Credit Balance Accounts are the borrowing system to trade securities. We will consider a customers status by their portfolio, not the cost of each security. The customer has to mortgage their cash or other securities and the value of the mortgage must have a minimum value equal to initial margin. For instance, a customer's mortgage equals ฿0.5 million and the present initial margin is 50% so the customer's credit balance is ฿1 million. The system will adjust the value of security by its closing price (Mark to Market) everyday. This will effect the credit balance of the customer, which depends on the securities' value too.
The customer will be informed that the risk of the borrowing to trade the securities and/or borrowing to short sale sale as well as the risk of money deposit with the company will not be protected by Financial Institutional Development Fund (FIDF).
The customer has to deposit cash before the first trade will be taken and shall not be less than the initial margin rate.
Credit line for trading and borrowing securities in order to short sale has to be a single credit line.
The rate of stamp duty for the contract is ?1 for ? 2,000 credit line and ? 1 for over ? 2,000 credit line but less than ? 10,000
In case of cheque, the company has to receive money from the customer before trading securities or short sale.
Acceptable mortgage
Cash
Securities that the company allows to trade in credit balance account.
Note : The company will occasionally announce the securities that are allowed to trade, the securities that the company accepts to be mortgaged and the discount rate.
4.1 Credit Line will be calculated by excess equity
4.2 The customers can not trade or short sale over their credit line.
The company will occasionally announce the securities that are allowed to trade or short sale in Credit Balance Accounts.
The company currently sets Initial Margin at 50% and will announce again if there is any change.
7.1 Additional Mortgage will be made if the asset value of the customer is less than the required mortgage value and will be added until the equity of the customer is equal to or higher than the required mortgage. The customers have to add up the mortgage within five days otherwise their securities will be forced to sell.
7.2 Force Sell will be implemented the following work day when the asset value of the customer is less than the minimum required mortgage in order to balance the asset value of the customer or make it higher than the required mortgage.
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* Lending Rate, Deposit Rate, and Guarantee Interest Rate for short sale will be announced by the company occasionally. * The company will pay and receive the interest and lending fee in order to short sale by adjusting the margin account of the customer as it assumes customer withdrawal or additional deposit at the end of every month. |
