Margins

Derayah Provides Multiple Margin types, sharia approved via multiple margins, It is additional buying power that the investor can borrow using his investment portfolio as collateral. This loan can be used to buy additional investments, thereby increasing the opportunity to magnify returns.

 

Margin Loan Requirements

  • Open an investment account with Derayah
  • Sign a margin loan agreement
  • Complete a client financial experience assessment
  • Provide previous trading account statements (if required)
  • Pass an interview (if required)
  • Transfer collateral (shares or cash)
  • Commence margin trading

Margin Loan Benefits

  • Shariah approved
  • No Financing Costs
  • More flexibility in selecting shares
  • Annual & Monthly financing contracts
  • A magnified ability to capture arising opportunities in the market

Margin Loan Conditions

  • The client must be 18 years of age or older.
  • The client must have a minimum level of investment experience
  • The client must pass a credit check
  • The client must exhibit a predetermined minimum level of tolerance for investment risk
  • Maximum margin amount SAR 40,000,000

Margin Types Comparison

Product Description Benefits
Free Margin

If you are an active trader in the stock market with a short term investment strategy (daily or weekly) and you have experience in managing your investments, the Free Margin would be one of the best solutions available in the Saudi Market.

  • Monthly financing contract

  • No fee for submitting a margin request

  • Free financing (no financing costs)

  • More flexibility in selecting shares per Equity Rating requirements

  • Shariah approved

Murabaha Margin

Most appropriate for clients interested in long term investments or sparse trading. It is also an efficient financing solution for investors in mutual funds.  

  • Annual financing contract

  • No fee for submitting a margin request

  • Does not require the client to close positions within a specified period

  • Applies to all markets and investment funds.

  • Shariah approved

Free Margin Trading

This product offers you free trading and more flexibility in turning over your portfolio. Free margin trading requires closing out your positions at least once a month. If you have experience in managing your investments and in executing multiple orders, this could be one of the best financing solutions for the Saudi Market.

  • Monthly financing contract

  • Shariah approved

  • No minimum required trading volume or turnover amount

  • More flexibility in selecting shares per Equity Rating requirements

  • Fixed monthly fee for all services (including trading fee)

  • Free financing and trading (no commissions or financing costs)