FAQs
Facility limit means the amount that we are prepared to lend you when you trade via your RakuMargin account. Default facility limit of RakuMargin account is RM200,000. The pre-approved facility limit is up to RM200,000. A higher limit is available upon request and approval.
Collaterals are cash and marginable shares that are pledged to obtain a trading limit.
No. You get a facility limit of up to RM200,000. Your trading limit will depend on the cash and shares pledged as collateral subjected to margin ratio.
Generally, your trading limit is determined based on the pledged cash and shares. They will each be assigned a multiplier.
For example,
- RM10,000 (Cash deposit) : Trading limit of RM22,500 (x2.25 cash)
- RM10,000 (shares) : Trading limit of RM12,500 (x1.25 pledged shares)
Note: Example above is based assumption you do not have outstanding balance in RakuMargin account.
If you have outstanding balance in your RakuMargin account, the formula is as follows. Either option A or B can be adopted. Whichever is lower will be adopted as the margin trading limit.
Option A: (Share Collateral Value + Cash) – Gross Outstanding x MOF
__________________________________________________________________
(MOF –100%)
Option B: Margin Facility Limit – Gross Outstanding Balance
A percentage of the collateral value pledged to secure the loan.
For example, Raku Margin’s MOF requires 180% (RM18,000/RM10,000) where you need total of RM18,000 of collateral to secure the outstanding loan of RM10,000.
Yes, by submitting your request together with supporting materials via the trading platform. Request is subjected to Kenanga Investmen Bank Berhad’s (our financier) approval.
Supporting documents:
- Income Evidence (EPF statement, BE Form, Salary Slips)
- Proposal for pledged cash
- Proposal for pledged shares
We will send you an email and ask for a digital sign off on the supplementary Letter of Offer which is available on the “Agreement” in the member webpage.
“Outstanding” is defined as items that are owed by you such as financed shares, contra loss, debit interest etc.
The outstanding debit bills, contra loss would be settled first followed by settlement of outstanding purchases will be based on board lot and First In First Out (FIFO) basis.
Marginable stock are those that give you collateral value whereas non marginable stocks are those that did not give collateral value for your RakuMargin Account.
You can trade shares that are tagged “marginable shares” only while shares marked non-marginable shares can only be sold via our platform.
Marginable shares refers to stocks that are allowed to be financed under RakuMargin account. Stocks with high liquidity are most likely marginable. Most brokers will publish list of marginable stocks and non-marginable stocks on their website.
List of marginable stocks and non-marginable stocks are available at the STOCK INFO page or STOCK INFO >> MARGINABLE STOCKS or NON-MARGINABLE STOCKS.
Generally non-marginable counters are:
- PN17 counters
- GN3 ACE Market
- Delisted counters
- Call Warrants counters
- Designated counters
- Warrants and Loan Stocks that have expiry of less than 180 days
- Leverage and Inverse ETFs
- Related counters such as Bonus shares, Rights Entitlement separately quoted, Loan Stocks, Transferable Subscription Rights, Warrants and other type of equity related to Non-Marginable Counters are to be deemed as non-marginable
- Any other identified counters identified by Kenanga Investment Bank Berhad.
We adopt the First In First Out (FIFO) approach which means the earliest outstanding purchases/contracts will have the highest priority in terms of being contra-ed off. The contra process will be processed at the end of the day.
Other realized debit outstanding items will be auto setoff/settle daily against available cash in RakuMargin based below in terms of priority
- Miscellaneous Charges
- Debit Interest
- Contra Loss
Notes: Contra gain will be credited on the due date; contra loss will be realized on the due date.
You can do it via the trading platform.
Please login and select “MY ACCOUNT” >> “Margin” >> “Outstanding” and key in the amount that you wish to settle in “Amount for settlement”.
Be advised that it is subject to manual approval from Kenanga Investment Bank Berhad and Rakuten Trade to ensure that margin ratio does not go below 180%.
Are shares entitlement resulted from a corporation of non-marginable counters are considered as non-marginable shares as well?
Yes. If the entitlement of shares was resulted from corporate action of non-marginable counters, this entitlement of shares will be considered as non-marginable shares as well.
You may get margin call letter at MY STATEMENT on member’s web page and select Margin Call/Forcesell notification.
You may view the short fall on member’s web page at Dashboard.
You may view the short fall via iSPEED.my APP at Margin Summary under My Account.
