Capital Max Introduces 'Smart Margin Trading': Loans Up to Rs 50 Million at 7.99% Interest

KATHMANDU: Targeting stock market investors looking to maximize their trading potential with limited capital, Capital Max Securities (Broker No. 62) has officially launched its 'Smart Margin Trading Facility'. This service allows investors to significantly increase their market exposure by purchasing shares worth much more than their actual cash balance.

According to the details released by the company, clients utilizing this facility will benefit from a highly competitive annual interest rate of 7.99 percent. To accommodate a wide range of investors, the broker has set a flexible credit limit, ranging from a minimum of Rs 1 million to a maximum of Rs 50 million.

Under the margin trading regulations, clients are required to maintain a minimum margin of 30 percent of the total share purchase value from their own funds, while Capital Max will finance the remaining 70 percent. The facility is offered for a flexible duration of 1 to 3 months, depending on the client's preference.

To ensure the service remains cost-effective, Capital Max is charging a minimal processing fee of 0.25 percent. The most attractive feature of this facility is that interest is calculated only on the actual amount utilized by the client, regardless of the total approved credit limit.

Capital Max asserts that the 'Smart Margin Trading' facility will address the liquidity crunch faced by investors while simultaneously boosting their purchasing power in the secondary market. The company highlights several benefits, including retaining full ownership of the shares, the convenience of borrowing and repaying funds as needed, and accessing capital at competitive market rates. Investors can avail themselves of this service from the company's head office in Gyaneshwor-30, Kathmandu, as well as its branch office located at New Road, Pokhara.

The Risk Factor: Since margin trading involves borrowing money to buy stocks, it inherently amplifies both potential profits and potential losses. In a declining market, investors face the risk of increasing debt obligations to the broker. Therefore, investors are strongly advised to thoroughly understand the company's terms and conditions and carefully assess their own risk tolerance before utilizing this facility.