1. Introduction

- EzMargin is an online instrument for margin trading by item enabling you to use a part of fund borrowed from FPTS guaranteed by the stocks purchased with this loan or stocks available on your account.

- This category includes two modules:

• EzMargin (Buying on margin): Allowing you to purchase securities with a part of your own cash and a part covered by FPTS. The shares purchased are be used as the collateral for this margin loan.
• EzMortgage (Mortgaging securities): Allowing you to use securities available on account or purchased securities pending for clearing payment to borrow money from FPTS.

2. Conditions

- To use this service, you need to sign the Margin Trading Contract and have margin limits granted by FPTS.

- You need to bring your original Identity Card/Citizenship Card to FPTS Head Office, Branches and Transaction Offices to sign the contract.

- To learn more about Securities Transaction Contract, and Terms of Margin Trading, please click here.

3. Service Instructions

- After signing the Margin Trading Contract and getting margin limits granted by FPTS, you can start to place an order to buy shares on margin/mortgage shares in the following ways:

• Via the physical office: You mark on the Margin Trading column on the Order Form or use Securities Mortgage Form
• Via telephone (only applied to customers using Token Card and registering telephone-based transaction)). You need to clearly tell the broker about your margin trading/securities mortgage when you place an order via telephone.
• Via the internet

- The following is the detailed instruction on this service if you are working on the EzTrade Online Trading Service of FPTS.

3.1. Eligible Margin List

- You can only buy securities on margin or mortgage securities listed in FPTS’s eligible margin list, which includes marginable stocks and their corresponding applicable margin loan ratios.

- The eligible margin list is updated by FPTS from time to time.

- To look up the eligible margin list, you can navigate to the Margin Order screen and click on the button 

- Or you can navigate to the Securities Mortgage screen and click the Mortgaged Securities

3.2. Margin limits

- To use the margin trading service, you need to have margin loan limits granted by FPTS.

- Margin loan limit is the maximum value that you can borrow from FPTS.

- In case you use up your limits, you can ask for more by sending the “Request for Changing Margin Limit”.

3.3. Placing Margin Trading Order

- The ways to place a margin trading order are the same ways applied to ordinary stock buying order.

Method 1: Place the order from the MarketWatch stock board

Right-click on the stock symbol you want to transact and click Buy/Sell. The order-placing screen will automatically fill in the following fields for the stock symbol you have chosen:

• Type of order: Buy or sell
• Stock symbol
• Best buying price (for the selling order) and the best selling price (for the buying order).

Method 2: On the order-placing window, click Margin Order tab and fill in required information. Please note that the order type is Buy.

Buy:

Sell:

Note:

- The money information section beneath shows your cash information, including available cash, suspended principal, margin loan and available limit for quick reference.

- If your chosen stock is not eligible for margin loan, you will be prompted this fact after you enter the stock symbol.

- The process of placing a selling on margin order is the same way as the process of placing a buying order. But, you need to select the contract you want to sell from your margin contract list.

3.4. Mortgaging shares

- Stock mortgage is the use of stocks available on your account or pending to be credited you’re your account as a guarantee for loans from FPTS.

- Stock mortgaging steps on EzTrade:

Note:

- The list of securities on the mortgage screen is all securities qualified for mortgage in your account.

- For stocks qualified for mortgage, you can change the quantity you want to mortgage.

- For stocks in transit into your account, you can only mortgage all stocks but you can borrow less than the maximum value recommended.

3.5. Repaying margin loan

- When your margin contract is dealt (buying on margin or mortgaging securities), you can repay such contract to reduce its interest carried.

- There are two methods of margin loan repayment:

• Paying margin loan by selling collateral securities: After the market closes, the FPTS system will automatically calculate the principal and interest value on securities sold. This value will be blocked for FPTS to collect the loan on the payment date of the selling order.
• Paying margin loan by cash: You can pay a part or an entirety of the margin loan with the available cash on the account.

- The following is the instruction for repaying margin loans with your available cash on account:

• Time of repayment: 0:00 - 16:30 on working days
• Margin loan repayment steps:

Note:

- In the trading session, when your margin contract is anchored for sale, you cannot pay up that contract and you have to wait until the market closes. If you want to pay up the contract immediately, you need to cancel its selling order first (if it has not been filled).

- If the order is fully or partly traded, you can make a repayment until the outstanding balance is 1 VND. The remaining balance will be automatically paid by FPTS system after the market closes.

- If your contract is assigned warning/handling, you can use the “Calculate the counter value function to bring your contract out of warning/handling threshold or finalization.

- If you pay up your margin contract of a stock that you have purchased but you have not settled payment at the end of the T+2 date, you can only mortgage the stock again after the T+2 date (i.e. the stock is already arrived in your account.

3.6. Renewing margin contract

- In principle, margin loan contracts are a 3-month maturity term. You need to repay the loan before the maturity date of each contract.

- According to the Margin Trading Service Use Contract, a margin loan contract may be agreed for another 3-month extension by FPTS, depending on FPTS's applicable margin trading policies.

- From 20 days prior to the maturity date, you can apply for contract renewal to FPTS.

- Contract renewal means you complete paying all borrowing interest of the contract, counted from the interest-carrying date to the date of contract renewal. The maturity date of the contract will be extended for extra three months.

- Margin contract extension steps:

3.7. Searching margin contracts

You can look up full information about margin contracts from the tab Margin Contract Management/Parameters - Margin Contract.