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Rating change of Ericsson B shares from 1 to 2

Dear. client,

We are changing Ericsson B share rating from 1 to 2. This will have impact on margin requirements for stock 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 14 at 17.00 h. Vilnius/Riga time.

What does this mean?

If you own Ericsson B shares and you are using them as a collateral for marginal trading, then up to this change you will be using 75% of their value as a collateral. After this change, only 50% will be used as a collateral. 

If you have open Ericsson B share CFD positions, then up to this change your position margin requirements will be 10%, meanwhile after the change they will increase to 20%. 

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: 
Thursday, October 13, 2016 - 13:00
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