Stock Loan
Stock Loan
A stock loan is a financial instrument that offers investors the opportunity to acquire larger positions beyond their available capital. In other words, it is an instrument that enables investors to purchase stocks by obtaining a stock loan from the intermediary institution to make larger transactions than the amount of equity they have. This financial instrument can only be used for stock purchase transactions, cannot be used for cash withdrawals, and cannot be used for the purchase of other products.
Why Stock Loan?
Stock loans provide investors with leverage, allowing them to take larger positions and therefore a larger portfolio.
Because larger positions can mean a wider range of stocks, you can diversify your portfolio, spread your risk, and create a more balanced investment strategy.
When sudden opportunities arise in the markets, a stock loan can allow you to achieve your strategic goals without running out of cash.
Without the need to save for a long time, you can easily realize your investments thanks to the funds you receive with a stock loan.
Why BtcTurk Yatırım?
BtcTurk Yatırım clients can easily and quickly submit their stock loan requests via the mobile app and benefit from the live support line 24/7 in case they need information.
BtcTurk Yatırım has been authorized as a Broadly Authorized Intermediary Institution as of 03.01.2023 to provide Trading Brokerage and Portfolio Brokerage Activities and Limited Custody Services.
Frequently Asked Questions
1) What is a Stock Loan?
The stock loan is intended to provide our investors with the opportunity to purchase additional stocks in addition to their cash balances and settlement receivables, based on the credit limit allocated to them and the collateral values of the assets in their portfolios.
Interest on the loan is automatically calculated at the time of settlement on T+2. No interest accrual is applied for payments made during the day until 4:00 p.m.
2) How to Apply for a Stock Loan?
You can easily apply for a stock loan offered by BtcTurk Yatırım Menkul Değerler A.Ş. via the BtcTurk|Hisse mobile app.
To finalize your application, you can follow the Stock Loan - Apply for Loan steps under the My Account menu in the mobile app.
3) How is the Usable Stock Credit Limit Determined?
Your stock credit limit is calculated based on the available portfolio value of your investment accounts at the time of application, and a credit limit exceeding the portfolio value is not approved. This assessment is automatically defined on the Credit Limit screen.
There is no minimum limit for margin stock purchases and only stocks are accepted as collateral. Each stock in your account is evaluated based on different collateral valuation ratios determined by BtcTurk Yatırım Menkul Değerler A.Ş. and additional purchase options are offered, provided that they do not exceed your stock credit limit.
4) How is the Interest Rate Applied to Stock Loans Calculated?
The reference interest rate to be applied to your margin purchases is calculated as the CBRT Late Liquidity Window (LON) x 1.5.
Reference Interest Rate (Daily) = (CBRT Late Liquidity Window x 1.5)/360
No interest is charged if the loan amount is closed by 4:00 p.m. on the settlement day of the margin transaction. You can view the current interest rate on the mobile app.
The interest rate to be applied for margin purchases is displayed for information purposes upon your application and the interest rate is periodically revised by BtcTurk Yatırım Menkul Değerler A.Ş. based on market conditions.
5) How are the Stocks for Stock Loans Selected?
The securities covered by the loan are determined by selecting the stocks deemed appropriate by BtcTurk Yatırım Menkul Değerler A.Ş. from among the stocks determined by the Capital Markets Board and Borsa Istanbul.
6) How Can I Access Stocks Eligible for Margin Trading and Collateral?
You can access the stocks eligible for margin trading and collateralization on the website and via live support.
7) How to Calculate the Valued Amount of Stocks with Collateral Ratio?
The collateral ratios of the stocks eligible as collateral are determined by BtcTurk Yatırım Menkul Değerler A.Ş. For example, in the scenario where THYAO stock is valued with 90% collateral ratio, its current price is TRY 268.00 and you have 100 THYAO shares in your portfolio, 100 * 268.00 * 0.9 = TRY 24,120 of free collateral power is created. With this free collateral power, you can also purchase another security eligible for loan with a value of TRY 24,120.
8) What is the Equity Ratio and How is it Calculated?
Your equity amount is calculated by multiplying the stock certificates in your account eligible as collateral by the defined collateral ratio. The calculation of the equity ratio as determined by the Capital Markets Board is set forth below.
Equity ratio = (Equity Amount - Loan Amount) / Equity Amount
It is mandatory to have at least 50% equity at the beginning of the margin purchase transactions. If the equity ratio in your ongoing credit position falls under the legal maintenance margin of 35%, you are required to increase your equity ratio to the maintenance margin ratio1 within two business days or take action to reduce your loan debt.
If equity replenishment is not realized, as stated in the Margin Trading Framework Agreement, our Institution is authorized to sell stocks in order to replenish your equity ratio to 50% initial ratio and 35% legal maintenance margin ratio. Until your equity ratio reaches the legal maintenance level, you cannot submit new stock purchase orders.
9) Why Can't I Trade on Margin Although My Stock Credit Limit is Defined?
Margin trading limit refers to the maximum amount you can purchase on credit. Your free collateral value is calculated by multiplying the free stocks eligible for margin trading in your portfolio (stocks without any sales order, administrative or legal blockage) by the proportion eligible for collateral. You can buy on margin up to this value.
10) How to Increase Stock Loan Limit?
The client can submit a request to increase the margin limit via live support with a written request. The request is evaluated by the institution and a positive or negative response is provided.