Margin Financing FAQs

Here you'll find quick answers to common questions about margin financing.

1. How is financing interest calculated?

Margin financing interest is accrued based on the actual deficit amount in the account after settlement.

Daily margin financing interest = Margin financing balance at 18:00 SGT on the trading day × (Annual margin rate / 365).

Interest begins accruing from the date the settlement is completed. For example, the settlement date for Singapore/Hong Kong stocks is T+2, which means interest will start accruing from T+2. Interest is calculated daily and deducted monthly.

No interest will be accrued if the interest for a single currency is less than 0.01.

Note: The margin rate may be adjusted periodically without prior notice to reflect changes in currency exchange rates.

The number of days for interest calculation is based on calendar days, with a 365-day year.

2. How can I adjust the financing limit?

If you need to adjust the financing limit, you can go to the Longbridge App > Portfolio > Financing Status to check if the button for requesting financing limit adjustments is displayed. If it is displayed, you can tap it to initiate an application for limit adjustment. If the button is not displayed, you can contact customer service to apply. Please note that submitting an application does not guarantee approval. Customers under 21 years old are not allowed to submit applications.

Note: You can only submit a financing limit adjustment application once every 24 hours in the system.

3. How can I repay margin financing debts?

There are generally three methods to repay margin financing debts:

• Currency conversion: If you have a sufficient balance in other currencies, you can use the currency conversion function to convert funds to the required currency to cover the debt.
• Deposit: Once you deposit funds to cover the debt, interest will stop accruing on your account.
• Sell stocks: After you sell a stock, interest continues to accrue until the funds are credited to your account (on the value date). Therefore, the account will still have a deficit between the time of selling the stocks and the value date, during which interest is still charged.

4. When should I repay margin financing debts?

The settlement time for Singapore/US/Hong Kong stocks is 18:00 SGT on each trading day.

• Example (I)
  • Assume that you use margin financing to buy Singapore/Hong Kong stocks on 1 January, with the settlement date being 1 January. No interest will be accrued on your account if you deposit the transaction amount (along with relevant fees) before 3 January 18:00 SGT.
• Example (II)
  • Assume that you use margin financing to buy US stocks on 1 January, with the settlement date being 2 January. No interest will be accrued on your account if you deposit the transaction amount (along with relevant fees) before 3 January 18:00 SGT.

Note: Interest on non-working days (e.g., Saturdays, Sundays, Good Friday, Christmas Day, and New Year's Day) will be calculated based on the balance at 18:00 SGT on the previous working day and accrued on the next working day.

Disclosures

This article is for reference only and does not constitute any investment advice.