dnb

DNB Trade®

Professional trading platform

Search results

Rating change

Dear. client,

We are changing rating for multiple shares. This will have impact on margin requirements for relevant CFDs and on the part of share value that can be used as a collateral (see more information below). Change will take place on 2016 10 24 at 16.00 h. Vilnius/Riga time.

What does this mean?

If you own shares listed in table bellow and you are using them as a collateral for marginal trading, then this rating change will impact collateral value, which you could use for margin trading.

If you have open CFD position, which are listed in table bellow, then margin requirement for these positions will change accordingly.

Instrument Symbol Old Rating New Rating
Blackhawk Network Shs HAWK:xnas 1 2
CRCAM Paris Et IDF CAF:xpar 2 3
China Shengmu Organic Milk Ltd 01432:xhkg 2 3
Healthcare Services Group Inc. HCSG:xnas 1 2
Bank Handlowy w Warszawie SA BHW:xwar 2 3
Stepan Company SCL:xnys 1 2
Air New Zealand Ltd AIZ:xasx 2 3
Cree Inc. CREE:xnas 1 2
Laird Plc LRD:xlon 3 4
Vocus Communications Ltd VOC:xasx 2 3
Cathay General Bancorp. CATY:xnas 1 2
SITC International Holdings Co. Ltd 01308:xhkg 2 3
Man Group EMG:xlon 2 3
Electrocomponent ECM:xlon 2 3
Park National Corp. PRK:xase 1 2
Telecom Egypt SAE TEEG:xlon 3 5

Use stocks as a collateral for margin trading

DNB Trade allows a percentage of the collateral invested in certain stocks to be used for margin trading activities

The collateral value of a stock position depends on the rating of the individual stock - please see conversion table below.

Reiting
Collateral value of stock position
1
75%
2 50%
3 25%
4 0%
5 0%

Example: 25% of the value of a position in a Stock with Rating 3 can be used as collateral (instead of cash) to trade margin products such as Forex, CFDs, Futures and Options.

Please note that DNB Bankas reserves the right to decrease or remove the use of Stock investment as collateral for large position sizes, or stock portfolios considered to be of very high risk.

Stocks placed as collateral for margin trading can not be used to cover the realized or unrealized loss.

For a complete list of available stocks, ratings and collateral values, go to DNB TraderGO > Account > Trading Conditions > Product > Stocks/ETF.

Margin requirements and Rating groups for stock and ETF CFDs

All  tradable CFDs are categorized in 5 different margin groups. Which margin group a CFD falls into depends on the several factors of the underlying instrument: Market Capitalisation (Large, Mid or Small), Volatility (Low, Moderate, High or Extreme), Credit Rating (Excellent, Good, Regular or Poor), Gap tendency (Negligible, Marginal, Critical or Catastrophic) and  Liquidity (High, Medium or Low). 

Stock CFD, Index CFD and ETF CFD

Reiting Leverage Margin requirement Instrument
1
1:10
​10%
Stock Index Trackers
2
1:5
20%
Single Stock CFD / ETF CFD
3
1:2,5
40%
Single Stock CFD / ETF CFD
4
1:1,25
80%
Single Stock CFD / ETF CFD
5
1:1
100%
Single Stock CFD / ETF CFD

 

Author: 
Mangirdas Dargužis
Published: 
Friday, October 21, 2016 - 14:30
Tags: