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 provides a 0% interest rate for the first month. After that, a service fee will apply on the financed amount, calculated at the QCB lending rate plus up to 2% per annum. This rate is subject to adjustment by the company, with customer and QFMA approval. Importantly, if you do not utilize the margin amount provided by CBFS, no interest will be charged. Terms & Conditions apply.

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 SymbolEnglish NameArabic NameLogo1AKHIAlKhaleej Takaful Group الخليجي للتكافل 

2BLDN Baladna Company بلدنا 

3BRESBarwa Real Estate بروه 

4CBQK Commercial Bank of Qatar البنك التجاري 

5DBIS Dlala دلاله 

6DHBK Doha Bank بنك الدوحة 

7ERES Ezdan Holding Group أزدان 

8GISSGulf International Services Company الخليج د 

9GWCS Gulf Warehousing مخازن 

10IGRD Investment Holding Group استثمار 

11IHGS Inma Holding إنماء 

12IQCD Industries Qatar الصناعات 

13MARK Masraf Al Rayan الريان 

14ORDS Ooredoo أوريدو 

15MCGS Medicare Group الرعاية 

16MERS Al Meera Consumer Goods Company الميره 

 

17MPHC Mesaieed Petrochemical Holding Co مسيعيد 18MRDS Mazaya Qatar مزايا 19NLCS National Leasing الإجارة 

20MCCS Mannai Corp المناعي 

21QAMC Qatar Aluminium Manufacturing Company قامكو 

22QATI Qatar Insurance قطر للتأمين 

23QATR Al Rayan Qatar ETF صندوق الريان 

24QETF QE Index ETF صندوق المؤشر 

25QEWSElectricity & Water كهرباء و ماء 

26QFBQ Qatar First Bank بنك قطر الأول 

27QFLS Qatar Fuel وقود 

28QGMD Qatar German For Medical Devices الطبية 

29QGTS Qatar Gas transport ناقلات 

30QIBK Qatar Islamic Bank المصرف 

31QIGD Qatari Investors Group مستثمرين 

32QIIK Qatar International Islamic Bank بنك الدولي الاسلامي 

33QIMD Qatar Industrial Manufacturing التحويلية 

34QISI Qatar Islamic Insurance الاسلامية ت 

35QNBK Qatar National Bank الوطني 

36QNCD Qatar Cement الاسمنت 

37QNNSQatar Navigation الملاحة 

38QOIS Qatar Oman Investment Company قطر عمان 

39SIIS Salam International سلام 

40UDCDUnited Development Company المتحدة

41VFQS Vodafone Qatar فودافون 

42WDAM Widam Food Company ودام