Margin trading regulations
1. Introduction to Margin Trading
Margin trading is a capital support product offered by VIX to customers to facilitate the purchase of securities listed by VIX and in accordance with legal regulations.
Registration Channels:
– At VIX headquarters
– Through account managers
2. Product Features
Applicable to: Individual and domestic institutional customers with regular securities trading accounts opened at VIX.
Capital support period: 90 days (renewable for an additional 90 days/renewal, the number of renewals is flexible depending on the period but a maximum of 3 renewals for the same loan)
Loan limit: Initial limit of 4 billion VND, with potential limit increases during trading.
Securities eligible for loan: Securities included in VIX’s trading portfolio.
Loan ratio: Maximum 50%.
3. Product advantages:
No need to sign documents for each loan.
Diverse portfolio of securities eligible for loan, adjusted by VIX according to market conditions.
Both pending and recently executed securities can be used as collateral for the loan.
Profit from the sale of pending securities is counted towards purchasing power without requiring advance payment.
Automatic disbursement and debt collection when funds are available in the account.
Allows debt restructuring of loans
4. Ratio set in the Margin Trading Account
4.1. Actual Margin Ratio (Rtt)
The Customer’s actual margin ratio (Rtt) is calculated using the following formula:
Rtt=(TAR)/(max (0,D)
Where:
– Rtt: is the actual margin ratio of the sub-account.
– TAR: The value of the collateral is the value of securities allowed for margin trading and rights arising from securities allowed for margin trading in the Customer’s Margin Trading Account calculated according to VIX’s valuation;
– D: Converted debt is the total actual debt value (including margin debt, custody fee debt and other types of debt if any) minus cash and minus proceeds from the sale of securities pending delivery that can be advanced in the Margin Trading Account.
4.2. Other Ratios
VIX applies the following ratios related to margin trading:
– Initial Margin Ratio (Rbđ)= 100%
– Maintenance Margin Ratio (Rdt) = 77%
– Forced Sale Ratio or Liquidation Ratio (Rxl) = 71.43%
In case of any changes to the applicable ratios, VIX will notify the Customer of the relevant ratios for this margin trading on the VIX website or directly send the information to the Customer through the methods agreed upon in the Margin Trading Contract.
Repayment Principle
When the account has funds, the system will automatically collect the debt at the end of the day.
5. Repayment Order:
– Repayment is based on the age of the debt; debts due earliest will be prioritized for repayment.
– Interest is repaid first, then principal.
