|
Type |
Formula |
Interest rate |
Charged by |
|
Margin
|
Margin Interest for a Calendar Day = Financing Amount * Annual Interest Rate of 6.8% / 365 |
Annual Interest Rate of 6.8% |
Moomoo Securities Malaysia Sdn. Bhd. ("Moomoo MY") |
The annual interest rate of Ringgit margin trading is 6.8%. The margin rate may be subject to periodical adjustments to adapt to any changes in currency exchange rates.
If there is no short position in your account, the financing amount on one day shall be calculated based on the settlement amount on the same day; if there is any short position, the arrears after deducting the short-selling collateral shall be used to calculate the financing amount.
Notes:
● The short-selling collateral refers to the cash which you are required to keep in your account to ensure you have sufficient cash to close your short positions, if any, and return the securities you borrowed. The cash required is equal to the market value of your short positions. Therefore, you may be charged margin interest even though the total "cash" in your account is more than 0.
● Due to the restrictions imposed by the Malaysia Foreign Exchange Policy on foreign currency financing, Moomoo MY provides a cross-currency trading on margin feature for foreign stocks. This feature combines ringgit financing and cross-currency trading, allowing users to trade foreign stocks without violating foreign currency financing restrictions (learn more). If trading of any non-ringgit-settled security results in a loan in ringgit, margin interest will only be incurred in ringgit.
Interest accrues per calendar day. If there is any financing amount, margin interest will accrue and a corresponding amount will be frozen simultaneously.
Interest is paid on a monthly basis; the accrued interest for a month is paid at the end of the month. If there are any arrears in your account after interest is paid, they will be included in the financing amount for the next month.
For example: A client has 0 cash balance, and borrowed 8,000 MYR to buy stocks on day T. The loan will begin to accrue interest after settlement on day T+2, and stop accruing interest after repayment. The following 4 scenarios are assumed, for each of which there is no financing amount after repayment:
|
Scenario
|
Repayment |
Actual repayment time |
Whether to accrue interest |
Interest accrual date |
Margin interest |
|
Intraday repayment |
Deposit on day T |
Day T |
No |
None |
None |
|
Intraday repayment |
Stock sale on day T |
Day T+2 |
No |
None |
None |
|
Overnight |
Deposit on day T+1 |
Day T+1 |
No |
None |
None |
|
Overnight |
Stock sale on day T+1 |
Day T+3 |
Yes |
On day T+2; one day in total |
= 8000 * 6.8% / 365 = 1.49 |
Only funds that have been settled can be used for repayment. Normally you can make repayment by selling stocks or by depositing funds, but there are differences:
● Selling stocks
The funds you obtained from selling stocks on day T will be settled on day T+2. Before the settlement is completed, the above funds cannot be used to repay the arrears. If there are any arrears in your account, you will continue to be charged interest.
● Depositing funds
The funds you deposited on day T are considered to have been settled and will be used to repay the arrears first. The part of arrears which have been repaid will no longer accrue interest from day T.
|
Type |
Formula |
Interest rate |
Charged by |
|
Short Selling |
Interest on Short Selling for a Single Natural Day = Market Value of Borrowed Securities * Interest Rate of Short Selling / 360 |
Since the interest rate of short selling varies with stocks, please refer to the actual interest rate calculated by the system when placing an order |
Upstream data providers |
The interest rate of short selling is an annual interest rate, with 360 days a year.
The interest rate of short selling is generally related to the risk level of the underlying stocks, their liquidity in the market, and the short-selling ratio (the ratio of the amount that can be borrowed to the total amount), and thus is not a fixed value.
The interest rate of short selling may fluctuate at any time depending on the underlying stocks, date and time. After short selling is completed, the interest payable on the underlying stocks for each calendar day may be different. The daily interest rate is subject to the settlement time and can be viewed through the statements.
Market Value of Borrowed Securities = Settlement Price * Number of Stocks. The market value of borrowed securities is calculated based on the stock settlement price and can be viewed through the statements.
Stock settlement price = Closing Price * 102% (rounded up). Example: Settlement Price = 24.910 * 102% = 25.4082. After rounding up, the settlement price is 26.
Interest begins to accrue from the settlement date (inclusive) of the borrowed stocks sold short, and stops accruing on the settlement date (inclusive) of the stocks returned through buyback or transfer.
Interest on short selling accrues per calendar day, and a corresponding amount will be frozen and deducted at the end of every month. If any arrears occur after interest is paid at the end of a month, they will be included in the loan for the next month.
For example: A client short sold 300 shares with borrowed stocks on day T. Interest will start to accrue after settlement on day T+1, and stops accruing after the settlement of the stocks returned. The following 4 scenarios are assumed, for each of which the client has no short positions of U.S. stocks after returning the borrowed stocks, the closing price on day T+1 is $184.1, and the interest rate of short selling on day T+1 is 1.01%:
|
Scenario
|
Stocks return |
Actual return date |
Whether to accrue interest |
Interest accrual date |
Interest on short selling |
|
Intraday return
|
Stocks transfer on day T |
Day T |
No |
None |
None |
|
Intraday return
|
Stocks buyback on day T |
Day T+1 |
No |
None |
None |
|
Short position overnight |
Stocks transfer on day T+1 |
Day T+1 |
No |
None |
None |
|
Short position overnight |
Stocks buyback on day T+1 |
Day T+2 |
Yes |
On day T+1; one day in total |
=300*ROUNDUP（184.1*102%）*1.01%/360=1.58
|
● Stocks buyback
You can return the borrowed stocks by buying back the same stocks in the same number. If you buy back stocks on day T, settlement will be completed on day T+1. Short positions will not stop accruing interest until the stocks brought back have been settled.
● Stocks transfer
You can also return the borrowed stocks by transferring the same stocks in a number not less than that of the borrowed stocks. The stocks transferred on day T will be settled the same day.