Frequently asked questions

A credit facility secured against the eligible securities already held in your account. Rather than selling positions to raise cash, you borrow against them, retaining the holdings and any associated economic exposure.

Capacity is derived from your portfolio value and collateral quality rather than set arbitrarily. Very small portfolios rarely support a facility that justifies the associated risk; we will tell you if that is the case rather than extending one.

No. The facility is open-ended, has no fixed repayment schedule and no early repayment penalty. It remains subject to periodic review and to the terms of your facility agreement.

Yes, in full or in part, at any time and without penalty. Interest stops accruing on the repaid amount from the day of repayment.

The applied annual rate is the published overnight benchmark for your loan currency plus the tier spread applicable to your balance. Both components are disclosed and the benchmark is independently verifiable.

Interest accrues daily on the closing balance using a 360-day basis and is settled monthly in arrears.

The benchmark component moves with the market and is reflected at each reset. The contractual spread is reviewed periodically; changes are notified in advance in accordance with your facility agreement.

No arrangement fee, no commitment or non-utilisation fee, and no minimum monthly charge. Third-party costs such as exchange fees, custody charges and applicable taxes are passed through at cost and itemised separately.

Yes. Spreads tier downward as the balance grows, and the tighter spread applies to the whole balance rather than only the incremental amount above the tier boundary.

Eligible listed equities, broad-market and sector ETFs, and developed-market government bonds, each at a published advance rate. Leveraged and inverse ETFs, sub-investment-grade credit and illiquid or event-driven names are excluded or heavily restricted.

Almost always concentration. Where a single holding represents an outsized share of the portfolio, the excess above the concentration threshold receives a reduced advance rate. Two portfolios of identical value can therefore support very different facilities.

Yes. Advance rates reflect liquidity and volatility, both of which change. A holding can be re-banded if its trading characteristics deteriorate or if it becomes subject to a corporate event.

The maintenance ratio — collateral value divided by loan balance — falling below 130%. Because capacity is recalculated continuously while the balance stays fixed, a market decline reduces the ratio even though you have taken no action.

The response window is set out in your facility agreement. It is overridden if the account reaches the stop-out level before the deadline, or in severely disorderly market conditions.

At 110% positions may be closed without further notice until the ratio is restored to a safe level. Position selection is at our discretion, typically favouring the most liquid holdings to minimise slippage, and execution is at prevailing market prices.

Considerably less than your maximum. To remain above the margin call level after a 35% market decline, the loan should not exceed roughly 50% of collateral value — even where the facility permits more.

Yes. Leveraged positions can result in losses exceeding your initial deposit. This is the central risk of margin financing and the reason we publish every threshold that governs it.