Margin Financing Related FAQs

How to Calculate Financing Interest?

Financing interest accrues on the actual deficit amount in the account after settlement.

Financing interest on a given day = the financing balance as of 18:00 SGT on the trading day × (annual financing interest rate/365).

The actual time that an account is in arrears is calculated from the date on which clearing is completed. For example, the due date for SG/HK stocks is T+2, meaning that interest will start to accrue on T+2. Interest accrues daily and is deducted on a monthly basis.

If the interest for a single currency is less than 0.01, no interest will accrue.

Note: The financing interest rate may be adjusted periodically without prior notice to adapt to changes in currency exchange rates;
The number of financing days is calculated as 365 calendar days in a year.

How to Adjust Credit Limits?

Clients who wish to adjust their credit limit may go to "Assets" > "Financing Status" to check whether the button for requesting financing limit adjustments is displayed. If displayed on the page, clients may click the button to initiate the request to adjust their limit. If the button is not displayed, the client may ask customer service to initiate the request. Do note that requests are not guaranteed to be approved. Clients under 21 years are not allowed to submit such requests.

Reminder: In-app requests for financing limit adjustments may only be sent once within a 24-hour period.

Methods for Repayment of Financing Debts

There are generally three methods for repayment:

1. If other currencies have sufficient balances to repay financing debts, clients may use the currency conversion function to convert into the corresponding currencies to make up for the outstanding balances
2. Deposits: Once we receive the deposit and the outstanding balances are cleared, interest will no longer accrue in the account.
3. Selling stocks: After stocks are sold, the interest will only stop accruing after the fund from sales of stocks is credited into the account (due date). Hence, interest will still accrue from sales date to the date prior to due date.

Time for Repayment of Financing Debts

The settlement time for the SG/US/HK stocks is 18:00 (Singapore time) every trading day. 

Example 1

Assuming that the customer used margin financing to buy SG/HK stocks on January 1 (HK time). The trade date will be captured as January 1 in the statement. Hence, clearing the margin deficit (including relevant transaction fees) before 18:00 SGT on January 3rd will not incur financing interest.

Example 2

Assuming that the customer used margin financing to buy US stocks on January 1 US time. The trade date will be captured as January 2 in the statement. Hence, clearing the margin deficit (including relevant transaction fees) before 18:00 SGT on January 3 will not incur financing interest.

Note: Interest for non-business days, such as Saturday, Sunday, Good Friday, Christmas Day, and New Year's Day, is accrued on the following business day based on the balance of the previous business day as of 18:00 SGT.