LBF as a margin provider

Stockmate · 1 LBF as a margin provider Fri Apr 08, 2011 7:42 pm

Stockmate

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LBF is providing margin facility at 19% . Capital trust provided margin to all through SMLL and LBF.So we had a great opportunity to collect at the bottom during the last few days. LBF conditions are very lose

Akalanka · 2 Re: LBF as a margin provider Fri Apr 08, 2011 8:37 pm

Akalanka

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I am a very beginner to CSE .. so just have a very brief idea about Margin trading. so if possible please explain more about and the benifits.

Thnks. . . . study

Gaja · 3 Re: LBF as a margin provider Fri Apr 08, 2011 9:04 pm

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Margin Trading Facility is a kind of Secured Overdraft facility provided for the Shares, with some securities ( such as Immovable Properties, Fixed Deposits or based on the shares already owned ). So the amount will vary based on the security provided by the investors and based on it Interest rate also will vary.

Say you have 10 Million worth of Portfolio then MT provider will say i give 10 million facility for you at 13% interest P.A. for this purpose they will open a slash account and all your shares will be transfered to that account and you can continue the trading through that account. They will give you a list of shares you can buy at different margin levels generally 50%, 30% or nill

If you buy all the shares at the 50% margin, then at any time your PF Market value should be 10 Million and if the market value comes down below that, the Margin Provider will request you to settle the difference and if you failed they will sell your shares to cover the difference

Since you were new to the Market its better for sometimes to do the trading with the free capital and later go for the debt capital - This is my personal opinion only

Akalanka · 4 Re: LBF as a margin provider Fri Apr 08, 2011 9:24 pm

Akalanka

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. . . thank u. ....very much .. .

had a brief idea and i ll read some more. . .

And if possible plz explain wts dis Buying Power and how it is calculated??. . .

Gaja · 5 Re: LBF as a margin provider Fri Apr 08, 2011 9:30 pm

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Akalanka wrote: . . . thank u. ....very much .. .

had a brief idea and i ll read some more. . .

And if possible plz explain wts dis Buying Power and how it is calculated??. . .

You want to know about the margin buying power or general buying power

Akalanka · 6 Re: LBF as a margin provider Fri Apr 08, 2011 9:37 pm

Akalanka

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Abt general buying power study

Gaja · 7 Re: LBF as a margin provider Fri Apr 08, 2011 9:48 pm

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Take it this way once you open the account say you put 100,000 to your account then your buying power is 100,000 and you can buy upto 100,000/= and say you buy up to 100,000 on the first day then next day the broker may allow certain percentage of the Portfolio generally 40% i.e up to 40,000/- ( but it varies with brokers also with your relationship ). In this case 40,000/- was the buying power on credit

kuk83 · 8 Re: LBF as a margin provider Fri Apr 08, 2011 9:53 pm

kuk83

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I got MT from asia commerce. Interest rate is 19%(high). But very flexible and very easy to handle. affraid

Gaja · 9 Re: LBF as a margin provider Fri Apr 08, 2011 9:54 pm

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http://www.investopedia.com/university/margin/margin4.asp

san1985 · 10 Re: LBF as a margin provider Fri Apr 08, 2011 10:31 pm

san1985

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19% seems to be on the high side neada Evil or Very Mad

, having said this is kind of a secured loan..

Who provide the best rates.....??

How about Sampath and commercial bank??

I was told that commercial charges around 13-14%, but u need to pay that amount directly to the bank, where as others will charge the the interest to the margin account.. Idea