Margin buying power
Concept: Margin buying power is the maximum amount a customer can buy securities on a margin account at each transaction time. Margin buying power is calculated by Pinetree based on client assets including money, stocks and debt.
You have 100 million in cash in your margin account and intend to buy stock X on the margin account. Currently, Stock X is in Pinetree’s margin portfolio with a 40% loan ratio. At that time, the collateral used to buy securities is VND 100 million in cash, your margin purchasing power is calculated as follows:
You own Stock Y with a total value of VND 100 million on a margin account and have no debt yet, the current lending rate for stock Y is 45%. You want to buy stock X with a loan rate of 40%.
You are owning stock Y with a total value of VND 100 million on a margin account, of which 90 million is equity and 10 million borrowed from Pinetree, the current lending rate of stock Y is 45%. You want to buy stock X with a loan rate of 40%.