Você está na página 1de 17

1. What is the COL X2 Margin Account?

The COL X2 Margin Account permits customers to conveniently borrow funds from CitisecOnline to purchase
marginable securities on credit and to borrow against marginable securities already in the account. 

This credit line facility will be available to you at an interest rate of 1.5% per month or 18% per annum (exclusive of
vat), accrued daily based on the amount of the credit utilized.
 
Back to Top

2. How does margin financing or the COL X2 account work?

The total amount you can borrow “on margin” depends upon the total value of your marginable stocks plus the cash
balance in your account.

For example:

Total Marginable Equity = Php200,000 


Available on Margin or Total Credit Line Granted = Php200,000 

As long as you keep sufficient collateral in your account above the borrowed amount your loan can remain
outstanding unless you choose to pay it down. If your account value drops below the requirement, you will need to
deposit additional cash or marginable stocks or sell securities in your account to cover the loan.
 
Back to Top

3. What are the advantages of the COL X2Account?

Availing of COL X2 allows you to increase your buying power and is a powerful investment tool, which lets you to do
the following:

· Increased Profit Potential - Enjoy a greater return on your investment capital by taking advantage of investment
opportunities in the market, even if the cash is not immediately available.

· Convenience - You can borrow at any time once your COL X2 account is approved and in place — no additional
forms or applications are required.

· Ready access to cash - Have ready access to funds for a wide range of uses for any personal financial need without
a separate application. You can withdraw some cash even if you have fully utilized all your cash.

· Competitive interest rates – COL X2’s interest rates are lower than most traditional consumer lending rates, such as
a personal loan or credit card.
Back to Top
 
4. What is the difference between a margin and cash account?

With a margin account, you have a flexible credit facility that allows you take advantage of investment opportunities,
even if the cash is not immediately available. In a cash account, you can only purchase stocks limited by the cash
balance you have in your account.
 
Back to Top
 
5. What should I know before using margin?

Borrowing on margin has inherent risks. Funds obtained on margin are considered a loan secured by your portfolio,
and the loan must be repaid along with the interest accrued. The amount of your loan is unaffected by fluctuations in
the value of your portfolio; however, you may lose more than the collateral value of the stocks in your margin
account.

Because of the risks involved, it is important that you fully understand the rules and requirements involved in trading
stocks on margin. 

· Margin borrowing increases your level of market risk and is not for everybody.
· All the marginable stocks and cash balance in your account are held as collateral for your margin loan.
· You must repay COL the amount of money you borrowed on margin, regardless of the underlying value of the
stocks you purchased.
· Interest will be accrued on your margin loan depending on the daily amount borrowed and will be deducted from
your account at the end of every month. COL’s base rate is subject to change without notice.
· You must maintain a minimum amount of equity in your account (see Q6).
· COL can change the margin requirements for any security without prior notice.
· You should maintain a minimum equity percentage to fully utilize the margin facility
 
Back to Top
 
6. Who are eligible to apply for a COL X2 account?

Existing COL customers with a total account equity of at least Php200,000 and above are eligible to apply for the COL
X2 account. Total account equity is computed by totaling the market value of all your stocks that are fully paid plus
adding remaining cash. 
 
Back to Top
 
7. What are considered marginable stocks?

Stocks which are eligible for margin. 


 
Back to Top
 
8. Where can I find the list of marginable stocks?

You can find the list of eligible stocks under the following sections:
 
  Quotes-> Stock Info-> Stock Symbols 
  Trade/Portfolio-> Portfolio -> List of Marginable Securities
   Trade/Portfolio->Enter Order -> Stock Symbols
 
The list is as follows:
 
Current list

# Stock Margin
Security Name Marginable Note
Code Rate %
1 ABS ABS-CBN CORPORATION Y 100 -
2 ABSP ABS-CBN HOLDINGS CORP. - Y 100 -
3 AC AYALA CORPORATION Y 100 -
4 AEV ABOITIZ EQUITY VENTURES, Y 100 -
5 AGI ALLIANCE GLOBAL GROUP, IN Y 100 -
6 ALI AYALA LAND, INC. Y 100 -
ABOITIZ POWER
7 AP Y 100 -
CORPORATION
8 BDO BANCO DE ORO UNIBANK, INC Y 100 -
9 BPI BANK OF THE PHILIPPINE IS Y 100 -
10 COL CITISECONLINE.COM, INC. Y 100 -
11 DMC DMCI HOLDINGS, INC. Y 100 -
12 EDC ENERGY DEVELOPMENT CORP. Y 100 -
13 FGEN FIRST GEN CORPORATION Y 100 -
14 FLI FILINVEST LAND, INC. Y 100 -
15 FPH FIRST PHILIPPINE HOLDINGS Y 100 -
16 GLO GLOBE TELECOM, INC. Y 100 -
17 ICT INT`L CONTAINER TERMINALS Y 100 -
18 JFC JOLLIBEE FOODS CORPORATIO Y 100 -
19 JGS JG SUMMIT HOLDINGS, INC. Y 100 -
LOPEZ HOLDINGS
20 LPZ Y 100 -
CORPORATIO
METROPOLITAN BANK &
21 MBT Y 100 -
TRUST
22 MEG MEGAWORLD CORPORATION Y 100 -
23 MER MANILA ELECTRIC COMPANY Y 100 -
24 MPI METRO PACIFIC INVESTMENTS Y 100 -
Equity Percentage of 70% shows that you own 70% of your account’s market value while the balance of 30% is on
margin (borrowed funds). 
 
Back to Top
 
12.What if my Equity Percentage falls below 50%?

If your equity percentage falls below 50%, your ability to purchase more stocks is halted up until this percentage can
be raised back to over 50%. This condition will trigger a Margin Alert via email and a notification in your
Trade/Portfolio section which informs you that your equity percentage has fallen below 50%.

If your equity percentage falls below 42.857% a Margin Call will be issued. 
 
Back to Top
 
13. What is a Margin Call?

A Margin Call is an important notice that requires the account holder to promptly (within 5 calendar days) bring the
account’s equity percentage above 50%. The account holder may deposit additional funds, deposit marginable stocks
or sell stocks to raise the equity percentage back to the required level. Should the account holder fail to comply, COL
then reserves the right to sell stocks in one’s account (not limited to those purchased on margin) as it sees fit to
bring the account’s equity percentage above 50%. 

If your equity percentage falls below 33.33%, your COL X2 account is automatically suspended and you will receive a
notification of a Margin Suspension.
 
Back to Top
 
14. What is Margin Suspension?
A Margin Suspension is set off when one’s equity percentage falls below 33.33% and this triggers the end of all
margin privileges and returns an account back to a cash account status. At the same time, it also requires the
account holder to immediately payoff one’s margin loan within 24-hours by depositing additional funds and/or
marginable stocks or sell stocks. Should the account holder fail to comply, COL then reserves the right to sell stocks
in your account (not limited to those purchased on margin) as it sees fit to cover the margin loan. An accounts
margin facility will thereby remain suspended until one re-applies for the facility.
 
Back to Top
 
15 .How can I reactivate my COL X2 account?

You will need to reapply for your COL X2 account to be reinstated by filling up a “Margin Reactivation Form” which
you can download from the websites Homepage under Forms and submit the original signed form to the COL
Business Center for evaluation. Remember you must meet the initial margin requirement of Php200,000 to re-apply. 
 
Back to Top
 
16. Can I still view the site and trade while my COL X2 account is suspended?

Yes, you can still view the site and trade using your COL account but your account will just be treated as a regular
cash account. 
 
Back to Top
17. How are the interest charges computed?

The interest charges are accrued based on the prevailing interest rate, mandated by COL. The daily interest charge is
based on the daily credit utilized multiplied by the interest rate per month divided by 30 days plus vat of 12%.

Formula:

Interest charge = (Daily Credit Utilized x (Monthly Interest Rate/30)) + 12% VAT 

The interest charges will be posted and deducted monthly and reflected in your monthly statement of account.
Back to Top
 
18. What is an example of using the COL X2 account?

Let’s say you have a Total Equity of Php200,000 in your COL X2 account (This represents Php100,000 in cash and a
market value of Php100,000 in Marginable stocks).

For every peso value in total equity, COL X2 will give you the equivalent amount as your additional buying power.
Therefore, you can now purchase any stock as long as you maintain an Equity Percentage of 50%+.

For this example, you will have an additional buying power of as much as Php200,000.00.
 
Back to Top
 
19. How do I apply for a margin account?

All you need to do is to follow these 3 steps:

i. Request a copy or Download the Terms and Conditions of the COL Margin Facility Agreement (2 copies). 

ii. Print and sign off on two (2) copies the COL Margin Facility Agreement

iii. Send the two (2) original signed COL Margin Facility Agreements to: CitisecOnline Business Center, Attention: COL
X2, 2703-C East Tower, Philippine Stock Exchange Centre, Exchange Road, Ortigas Center, 1605 Philippines. 

iv. The application for margin will be subject for approval.

Once approved, your COL X2 account will be available within 24 hours. Once you receive an email confirmation from
us, you can now view your new “Buying Power” by clicking on the Portfolio section of your Trade & Portfolio page
and begin using this facility.
Back to Top
 
20. Who can I contact for assistance?

You may contact our Customer Service Hotline at 6-333-777 or email at helpdesk@citiseconline.com
 

Back to Top

21. Glossary of Margin Terms

Cash Account

A type of account where all transactions are paid for in cash.

Buying Power Cash

The maximum value or amount available to make new purchases of non-marginable stocks or is the total amount
withdrawal in cash
Buying Power with Margin

The maximum value or amount available to buy marginable stocks. 

Margin Account

A type of account which enables the customer to borrow funds against their marginable equity to buy marginable
stocks.

Margin Alert

An email notification sent to the customer advising them that their equity percentage has fallen below 50% and that
their ability to purchase stock has been halted until the equity percentage is increased back above 50%.

Margin Call

An email notification sent to the customer advising them that their equity percentage has fallen below 42.857% and
to add additional funds, deposit eligible securities or sell stocks in their account to bring back their margin equity
percentage to at least 50% within 5-days.

Margin Suspension

An email notification sent to the customer advising them that their equity percentage has fallen below 33.33% and
that their margin account has been suspended. Customers will then have 24-hours to pay off the margin loan
completely by depositing additional cash and/or eligible securities or sell stocks in their account. COL then reserves
the right to sell stocks in your account (not limited to those purchased on margin) as it sees fit to cover the margin
loan. 

Margin Cover

Represents the percentage of your marginable securities over your margin loan.

Margin Equity

Represents total account equity less margin loan.

Equity Percentage

Equity Percentage shows the percentage share of ownership you have over your accounts market value. Thus an
Equity Percentage of 70% shows that you own 70% of your account’s market value while the balance of 30% is on
margin (borrowed funds).

Minimum Required Margin

Represent the minimum amount your account must own to back up your margin exposure. 

Margin Loan

Represents the total amount of borrowings. 

Marginable Stocks

Stocks which are eligible for margin.

Non-marginable Stocks

Stocks which are not eligible for margin. 

Total Account Equity


The total market value of all stocks and cash in your portfolio.

Você também pode gostar