Margin Trading (Margin)

Step 1: Open a securities account and sign a margin contract with BSC.

Step 2: Access the trading platform via BSC Webtrading or the BSC Smart Invest application.

Step 3.1: Execute Margin Trading on Webtrading

• Transfer funds/securities to the margin sub-account to begin trading.
• Navigate to the ‘Trade’ section and select the Margin sub-account for trading (e.g., MR10, MR90).
• Search for the stock symbol in the ‘Enter stock code’ field.
• Enter order details such as order type, price, and volume, then click ‘Buy’ to place the order.
• Based on the assets available in your margin sub-account, the system will automatically calculate the maximum quantity of stocks that can be purchased under BSC regulations (including additional quantities if the stock is margin-eligible at BSC).
• After trading, customers can review margin account details under the ‘Assets’ section in the ‘Trade’ tab.

Step 3.2: Customers can execute trades on the BSC Smart Invest app following the same process as on Webtrading.

Step 1: Access the trading platform via BSC Webtrading or the BSC Smart Invest application.

Step 2: Navigate to Menu -> Utilities -> Margin Stock List.

Step 3: Enter the stock symbol you want to search for.

• For Investors: Provides opportunities to quickly increase profits if they can capitalize on trends in securities. Stimulates the stock market, attracting more domestic and foreign investors to increase profitability.
• For Securities Companies: No need to allocate funds for deposit insurance or maintain safety ratios like banks. Increases the number of transactions and commission revenues.
• For the Stock Market: Attracts more investment from both domestic and international clients. Diversifies the stock market and progressively aligns it with global stock markets.

Conditions for Using the Service:

• You must have a securities account and a margin trading account.
• You are required to sign a Margin Trading Agreement as per BSC’s template.
• You must provide collateral in the form of cash or securities.
• You must comply with margin trading regulations.
• You must accept risks related to the stock market and fluctuations in loan interest rates.

Conditions for Placing a Margin Buy Order:

• You must complete the registration for the Margin Trading service.
• The stock you wish to trade must be in BSC’s list of margin-eligible securities.
• The order value must fall within your trading limit as determined by BSC.

Conditions for Transferring Funds/Securities from the Margin Account to the Regular Securities Account:

After withdrawing funds or securities from the margin account to the regular account, your portfolio margin ratio must be equal to or higher than the safety margin ratio as prescribed by BSC.

Margin Call Cases and Fund Deposit Solutions:

• A margin call is a notice sent by BSC requesting additional funds when the value of securities used as collateral for a loan drops to a certain threshold.
• BSC specifies a margin call ratio for each type of security, typically 30%. This means if the collateral value decreases and the margin drops below 30% of the total securities value, BSC will request additional funds to raise the margin ratio above 30%.

Example: If BSC sets a margin ratio at 55% and a margin call ratio at 30%, and you have 60 million VND to buy securities worth 100 million VND (borrowing 40 million VND from BSC), your actual margin ratio is 60/100 = 60%.

If the security’s value drops by 50%, the total securities value will be 50% x 100 million = 50 million VND. Your funds will then decrease to 50 million – 40 million = 10 million VND, resulting in a margin ratio of 10/50 = 20%.

In this case, BSC will require you to deposit at least 5 million VND to raise the margin ratio to 15/50 = 30%.

Handling Securities Removed from the Margin-Eligible List at BSC:

• If securities in your account are removed from BSC’s list of margin-eligible securities, their margin ratio will be adjusted to 0%.
• This adjustment may decrease your current margin ratio. You should actively monitor your portfolio and take appropriate action to manage your account as soon as possible.