The Margin Facility offered by AB Capital allows you to leverage borrowed funds to purchase additional stocks, that may potentially result in higher returns.
Advantages & Benefits
Increased Potential Return on Investment
Margin allows you to borrow money from AB Capital to purchase additional securities, which can amplify returns on your investment.
Enhanced Portfolio Diversification
Margin enables you to purchase more securities that you might not have been able to purchase with your own funds.
Competitive Interest Rates
AB Capital’s rate is relatively competitive compared to cash loan options in other financial institutions.
Margin Facility – Key Terms & Sample Computation
Eligibility
- Applicable to all existing AB Capital Securities clients with Online Trading Account
- Client must be 21 years old and above
- Minimum initial equity requirement: P200,00
Facility Limits
- Maximum credit limit: P1,000,000
Interest Rate
- 1.25% per month, plus 12% VAT
Sample Computation:
Scenario:
A client borrows ₱ 50,000 for 10 days to purchase Stock ABC.
| Description | Amount |
| Borrowed Amount | ₱ 50,000 |
| Monthly Interest (1.25%) | ₱ 625 |
| Daily Interest (₱625 ÷ 30 days) | ₱ 20.83 |
| +12% VAT | ₱ 2.50 |
| Interest per Day | ₱ 23.33 |
| Total Interest (10 days) | ₱ 233.33 |
For more details, please refer to the Frequently Asked Questions (FAQ) on the Margin Facility.
See full list of marginable stocks below:
| EXAMPLE OF ELIGIBLE FOR MARGIN | |
|---|---|
| 1. SM | SM Investments Corporation |
| 2. SMPH | SM Prime Holdings, Inc. |
| 3. ALI | Ayala Land, Inc. |
| 4. JGS | JG Summit Holdings, Inc. |
| 5. AC | Ayala Corporation |
| 6. BDO | BDO Unibank Inc. |
| 7. BPI | Bank of the Philippine Islands |
| 8. MER | Manila Electric Company |
| 9. URC | Universal Robina Corporation |
| 10. TEL | PDLT Inc. |
Start Leveraging
01
Print and email the Margin Application Form for assessment.
02
If application has been approved, print and sign the Margin Trading Agreement
03
Bring forms to head office or branch