Margin Accounts are aimed at clients who wish to have access to additional liquidity in order to tap investment opportunities. These are investors who already have or are in process of buying securities. The securities in the investor's account serve as collateral for the loan.
Based on the client’s creditworthiness and other factors, Ellinas Finance sets the minimum or initial “cover ratio” which must be determined so that the investor can carry out transactions though his account. The “cover ratio” is the minimum amount of money or securities that must exist in the account. If the ratio of money or securities is below the minimum “cover ratio”, then the investor will be asked to deposit money or securities in his account in order to ensure the minimum cover ratio level.
The difference between the value of the securities and the loan, is initially equal to the amount of cash the investor uses. This difference has to stay above a minimum margin requirement, the purpose of which is to protect the investor against a fall in the value of the securities to the point where the investor can no longer cover the loan.
Ellinas Finance offers two categories of margin accounts with different requirements and characteristics:
- Offers a leverage of 100% of initial margin (the amount of cash or shares of public companies transferred to the company as security).
- Margin call when value of cover falls below 75% of the value of your portfolio.
- The purchase of most of the securities on the Cyprus Stock Exchange and any securities in the category of small-, medium- and large-capitalisation of the Athens Stock Exchange except those in the Special Category, is permitted.
- Offers a leverage of 133% of initial margin (the amount of cash or shares in your account).
- Margin call when value of cover falls below 60% of the value of your portfolio.
- Only purchase of high-liquid securities on the Cyprus Stock Exchange and the Athens Stock Exchange is allowed.