Leon Depolas Securities S.A.
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Margin accounts / 3DC Print E-mail

In a developed market we believe that liquidity is a key tool for investors. Following this direction we provide our customers the possibility of proceeding to a credit agreement (Margin account) to purchase shares on the Athens Stock Exchange over an extremely competitive billing rate. The Margin account enables investors to take advantage of any buying opportunities in the most efficient manner. However, it should be noted that missuse of the Margin may result in significant loss of capital since, the client is investing greater amounts of his initial capital.

The Margin works the following way: The customer commits a part or all of his current portfolio as collateral for the brokerage firm, so as to be given credit for an indefinite period. This portfolio is called the security portfolio. The amount of credit will be provided depending on the value of the collateral and the weighting of each share included to it. The weighting factor is determined by such factors as the index in which each share is listed, marketability, its fundamentals and other relevant factors. The weighting factor of each share is defined only by the brokerage firm. As fas as the security portofolio is concerned, the customer retains all corporate rights (dividends, commitment to General Meetings, etc.).
An important element is the margin factor. The margin factor is defined as the difference between the current value of the security portofolio and the debit balance of the credit account. HCMC has set a minimum percentage of the initial margin to be determined 40% of the market value of the portfolio security. The Customer is obliged to cover any difference in margin deficit within three working days either a) with a cash amount equal to the difference in marginal gap or b) by commitment to additional securities of his current portfolio, or c) with a combination of  (a) and (b).
As minimum  percentage of the preserved margin is set to be 30% of the market value of the portfolio security. It is explicitly agreed that if during the validity and operation of this credit agreement, current margin is between the original and preserved margin, each new transaction carried out should not lead to an increase in the deficit margin preserving in any case the minimum safety margin .

B) 3DC
The case of credit provided to the customer in order to pay for shares transactions with a maximum time limit of three (3) working days is called 3DC.  3DC can be exercised in cases of stocks with very short-term credit in order to take profit of any direct or strong upward movement in stock markets.

For  more details of  Margin and  3DC, please contact the authorised persons in our company.

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