- To keep your credit line open, your equity must be at least 50% (200% Collateral requirement) of the value of the marginable stocks in your portfolio.
- Equity is the value of marginable stocks in your portfolio minus the outstanding loan balance.
- In no event shall new or additional credit be extended in account in which equity is less than P 50,000
- This means that if you have P1 million worth of stocks in your account, your loan balance should not exceed P500,000
- Sometimes, the value of your equity falls especially when the market price of the collateral declines. In this case, if your equity falls below 50%, then you will receive a “Margin Call”.
NEWS
What is the equity level maintenance requirement?
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2024-05-23 14:46:31