Important Concepts
Important Concepts
Equity Ratings
Equity ratings measure the performance of stocks, which are provided as collateral for margin financing. Equity ratings decline as the quality of purchased or intended shares decreases. Certain stocks are typically not considered for margin financing.
Investment firms also rate all listed shares based on historical performance. Margin clients may utilize the margin provided to them according to the rating of each company.
Example:
If your capital is SAR 1 million and you receive a margin of SAR 1 million (giving you a maximum buying power of SAR 2 million), and you intend to purchase a stock with a 60% rating, you may use 60% of your maximum buying power to buy the stock (SAR 1.2 million). If you do not use the full SAR 1.2 million to buy the stock, you can still use the remaining SAR 800,000 to buy stocks rated at 100% or use SAR 400,000 to buy stocks rated at 80%, or a combination of both. It is important to note that if you use the maximum buying power to buy stocks rated at 60%, you will not be able to buy additional stocks rated at 60% or lower.
Derayah’s margin clients may view the latest version of Equity Ratings by logging into their portfolios on Derayah’s website.
Important Concepts
Frequently Asked Questions
You can browse frequently asked questions about this service.
If your question is not available here, You can contact us.
What is the T+2 settlement period?
The security settlement means transferring the executed security from the seller’s investment portfolio to the buyer’s investment portfolio. Cash settlements refer to the process of transferring the value of securities for executed transactions from the buyer’s investment account to the seller’s investment account through the exchange members. More details about it can be found via the following link from the Tadawul website. Settlement in the Saudi market: https://www.tadawul.com.sa/wps/portal/tadawul/knowledge-center/about/settlement-cycle?locale=ar
What are fractional shares?
Trading fractional shares allows you to invest in companies, when you cannot afford the full share price.
It also makes it easier for you to diversify your portfolio by allowing you to purchase fractional amounts in multiple companies when you otherwise may have only been able to purchase whole shares in one or two companies. If you enable your account to trade in fractions, you will buy or sell a fraction of a share based on the amount of cash you specify.
For example, if you want to spend $500 but one share of the stock you want to buy is currently at $1000 you would end up with 0.5 shares.
Please note that fractional shares are not tradable after/before US market regular trade hours.
What are the investment fund options and how many are there in the platform?
The “Derayah platform” provides the possibility of subscribing and redeeming more than 70 diversified investment funds in terms of fund manager, fund type, performance and risk level. Making the appropriate investment decision, and all of these services are available electronically without the need to submit paper documents or visit the branch.
What is the minimum amount for Discretionary Portfolio Management (DPM)?
The minimum amount for portfolio management is SAR 20 million.
Where are dividends for my shares deposited?
All dividends due from all markets are credited to your investment portfolio with Derayah Financial.
Still need some help?
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