FAQs - RakuMargin: Margin Ratio & Force Selling
The amount deducted from your facility limit that have been utilized to finance outstanding purchases.
No. If you wish to settle your outstanding purchases, you’re required to submit settlement instruction(s) 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”.
All marginable shares collateral value will be valued at either the ceiling price or percentage haircut on the last done price of the preceding market day.
Rakuten Trade and Kenanga Investment Bank Berhad will take whichever collateral value is lower in determining the margin ratio.
- ACE Market: valued not more than 50% of the last done price on the preceding market day
- Main Market: valued at a ceiling price determined by Kenanga Investment Bank Berhad or the last done price on the preceding market day, whichever is lower. The ceiling price valuation excludes FBM KLCI counters
- Warrants and Loan Stock Market: valued at a ceiling price determined by Kenanga Investment Bank Berhad or the last done price on the preceding market day, whichever is lower. The ceiling price valuation excludes warrants and loan stocks related to the mother share of FBM KLCI counters.
- Suspended Counters: Counters that are suspended from trading after 1 market day will have a 50% haircut imposed. Counters that are suspended for more than 3 market days will have a 100% haircut.
Also known as an equity ratio, it is the total collateral value divided by the gross outstanding balance in your RakuMargin account.
RM18,000 (Collateral value) = Margin ratio is 180%
RM10,000 (Gross outstanding)
It affects the status of your RakuMargin account in the event of the following scenarios.
- Should the margin ratio fall below 180%, the following condition will apply:
- Buy limit zero (0),
- Cash withdrawal limit zero (0)
- Share transfer limit zero (0)
At the end of the trading day, the system will auto offset the other outstanding debit items and the remaining cash balance will be utilized to cover the outstanding purchases to rectify margin position as high as 180% ratio (Required Maintenance Ratio)
- Should the margin ratio fall below 150%, a margin call email and web notification will be sent to you and you have three (3) market days to pledge additional cash or/and acceptable shares to bring the margin ratio above the 150% ratio (Required Equity Ratio).
- Failure to pledge sufficient funds / shares will result in force-selling of shares in your RakuMargin account on the 4th market day.
- Your RakuMargin account will also be suspended from buying any further securities
- If the margin ratio falls below the Force Sell Ratio (140%), a force sell email notification and web notification will be sent to inform you that the RakuMargin account financier, Kenanga Investment Bank Berhad shall have the absolute discretion to, and without notice to the client, liquidate the available shares and/or such other collateral provided by the client, to bring the margin ratio up to 150% (Required Equity Ratio)
Yes, please deposit with sighted cash or sighted shares into your RakuMargin account. Alternatively, you can sell the financed shares.
Margin call & failure to respond to margin call
Please perform fund online deposit transfer into your RakuMargin account to rectify your margin shortfall latest by the 3rd business day (T+3) at 5:00pm, from the date of margin call letter issued to you. ok
Failure to maintain the required collateral will trigger forceselling of share(s) on the next business day (T+4). We shall not be responsible for any losses incurred arising from the forceselling of share(s) if you fail to perform online fund deposit by the required timeframe. Please contact Rakuten Trade’s Customer Service team if you have further clarification.
ForceSell ratio triggered & failure to rectify position above 150%
Please perform fund online deposit transfer into your RakuMargin account to rectify your margin shortfall according to force sell letter issued to you.
Failure to rectify position above 150% (Required Equity Ratio) will trigger forceselling of share(s) on next business day. We shall not be responsible for any losses incurred arising from the forceselling of share(s) if you fail to perform online fund deposit by the required timeframe. Please contact Rakuten Trade’s Customer Service team if you have further clarification.
Just write us a proposal to settle outstanding balance. Our financier Kenanga Investment Bank Berhad will review it and upon approval subject to terms and conditions agreed both of you.
You may get Daily Margin Statement at member’s web page via MY ACCOUNT >> RakuMargin >> MY STATEMENT >> DAILY MARGIN STATEMENT.
Unfortunately no as the system will earmark the force sell quantity automatically.