Open Margin Account

 

WHAT IS A MARGIN ACCOUNT?

A Margin Account allows you to borrow cash from CBFS to purchase securities. The loan in the account is collateralized by the securities you purchase. If the value of the stock drops sufficiently, the account holder will be required to deposit more cash or sell a portion of the securities. 

 

ADVANTAGES OF MARGIN ACCOUNT 

Increased returns – The most significant advantage of using margin is the ability to leverage your investments and increase returns when the price of your holdings move in your favor. You can hold position until necessary, CBFS will not liquidate your positions in 7 days.

Competitive interest rates – CBFS offers 0% interest for 3 months and thereafter margin interest rates up to 6% per annum. If you do not use the margin amount lent by CBFS, you won’t be charged any interest.  

More Purchasing Power – Being able to invest more while having limited cash on hand allows you to take advantage of timely market opportunities. Get QR 1 for every QR 1 brought into the margin account.  

Increased cash dividends - An increase in current income from cash dividends bought with the margin.

 

RISKS OF MARGIN TRADING  

Trading with Margin amplifies losses the same way as it amplifies gains. The biggest risk from buying on margin is that you can lose much more money than you initially invested. A loss of 50 percent or more from stocks that were half-funded using borrowed funds, equates to a loss of 100 percent or more, plus interest and commissions.  

If the value of the stock drops significantly, the account holder will be required to deposit more cash or sell a portion of the securities. 

 

SHAREHOLDER RIGHTS  

The investor gets to enjoy all the rights related to the stocks bought on margin such as dividends, receive bonus shares & vote in General Assemblies 

 

MORTGAGE OF SHARES  

The funded shares cannot be mortgaged; however, the investor can sell the shares at any time through the electronic trading system. 

 

PRE REQUISTES FOR OPENING A MARGIN ACCOUNT 
  • Must have an active trading account with Commercial Bank Financial Services 
  • Minimum initial deposit of QR 10,000 worth of shares or cash 

SHARES ALLOWED FOR MARGIN TRADING 40 +

Sr no. Company Symbol English Name Arabic Name Logo
1 AHCS Aamal  أعمال

2 AKHI AlKhaleej Takaful Group  الخليجي للتكافل 

3 BLDN  Baladna Company  بلدنا 

4 BRES Barwa Real Estate  بروه 

5 CBQK  Commercial Bank of Qatar  البنك التجاري 

6 DBIS  Dlala  دلاله 

7 DHBK  Doha Bank  بنك الدوحة 

8 DOHI Doha Insurance  الدوحة للتأمين 

9 ERES  Ezdan Holding Group  أزدان 

10 GISS Gulf International Services Company  الخليج د 

11 GWCS  Gulf Warehousing  مخازن 

12 IGRD  Investment Holding Group  استثمار 

13 IHGS  Inma Holding  إنماء 

14 IQCD  Industries Qatar  الصناعات 

15 MARK  Masraf Al Rayan  الريان 

16 ORDS  Ooredoo  أوريدو 

17 MCGS  Medicare Group  الرعاية 

18 MERS  Al Meera Consumer Goods Company  الميره 

 

19 MPHC  Mesaieed Petrochemical Holding Co  مسيعيد 
20 MRDS  Mazaya Qatar  مزايا 
21 NLCS  National Leasing  الإجارة 

22 MCCS  Mannai Corp  المناعي 

23 QAMC  Qatar Aluminium Manufacturing Company  قامكو 

24 QATI  Qatar Insurance  قطر للتأمين 

25 QATR  Al Rayan Qatar ETF  صندوق الريان 

26 QETF  QE Index ETF  صندوق المؤشر 

27 QEWS Electricity & Water  كهرباء و ماء 

28 QFBQ  Qatar First Bank  بنك قطر الأول 

29 QFLS  Qatar Fuel  وقود 

30 QGMD  Qatar German For Medical Devices  الطبية 

31 QGTS  Qatar Gas transport  ناقلات 

32 QIBK  Qatar Islamic Bank  المصرف 

33 QIGD  Qatari Investors Group  مستثمرين 

34 QIIK  Qatar International Islamic Bank  بنك الدولي الاسلامي 

35 QIMD  Qatar Industrial Manufacturing  التحويلية 

36 QISI  Qatar Islamic Insurance  الاسلامية ت 

37 QNBK  Qatar National Bank  الوطني 

38 QNCD  Qatar Cement  الاسمنت 

39 QNNS Qatar Navigation  الملاحة 

40 QOIS  Qatar Oman Investment Company  قطر عمان 

41 SIIS  Salam International  سلام 

42 UDCD United Development Company  المتحدة

43 VFQS  Vodafone Qatar  فودافون 

44 WDAM  Widam Food Company  ودام

45 QLMI  QLM Life & Medical Insurance Company  كيو ال ام