Discretionary Financing (DF)

Stretch your holding power at a lower cost

The flexibility of trading strategy and portfolio management

Discretionary Financing ("DF") is a financial service offered by the Bank that allows clients to settle their outstanding stock purchase at a longer period of time and at a lower cost.

Features & Benefits

Longer Settlement Period

Allow you to settle your outstanding purchases at any time up to 12.30 pm on T+7

Flexibility

Have a longer period to settle for the stock purchased and the flexibility in terms of trading strategy and portfolio management

Lower Cost

Fees incurred on DF are generally lower than brokerage fees incurred on multiple purchases and sales contract

Normal Trading vs DF Trading

Normal Trading

for holding the position to > T+6
(Contra Period T+2)

Cost incurred on 3 BUYS & 3 SELLS contract as illustrated below
Buy and sell prices are subject to market fluctuation

T

1st Buy

T+1

T+2

T+3

1st Sell*
2nd Buy

T+4

T+5

T+6

2nd Sell*
3rd Buy

T+7

T+8

3rd Sell

Discretionary Financing Trading

(Contra Period T+7)

Cost incurred only for 1 BUY & 1 SELL contract as illustrated below
With DF, you only lock-in 1 BUY price

T

T+1

T+2

T+3

Auto Convert to DF

T+4

T+5

T+6

T+7

Settlement Day

T+8

Force Sell Day

Normal Trading

for holding the position to > T+6
(Contra Period T+2)

Cost incurred on 3 BUYS & 3 SELLS contract as illustrated below
Buy and sell prices are subject to market fluctuation

T

1st Buy

T+1

T+2

T+3

1st Sell*
2nd Buy

T+4

T+5

T+6

2nd Sell*
3rd Buy

T+7

T+8

3rd Sell

Discretionary Financing Trading

(Contra Period T+7)

Cost incurred only for 1 BUY & 1 SELL contract as illustrated below
With DF, you only lock-in 1 BUY price

T

T+1

T+2

T+3

Auto
Convert
to DF

T+4

T+5

T+6

T+7

Settlement
Day

T+8

Force Sell
Day

Note:
*Assuming sale transaction are on force-selling day (T+3)

Contract Value : RM101,000 Brokerage fee : 0.21%
Normal Trading Brokerage Fees		DF Trading Cost
(0.21% x 6 transactions of RM 101,000)	RM 1,272.60	Brokerage Fee (0.21% x 2 transactions of RM 101,000)	RM 424.20
Stamp Duty & Clearing Fee	RM 787.80	Stamp Duty & Clearing Fee	RM 262.60
		DF Fee (RM101,000 X 0.25%)	RM 252.20
		DF Interest (RM101,000 X 8% X (7/365 days)	RM 154.96

Total Cost	RM 2,060.40	Total Cost *DF interest is calculated based on calendar days	RM 1,094.26
1 DF Trading Cycle = 3 Normal Trading Cycles Total Cost Savings with DF (RM 2,060.40 - RM 1,094.26) = RM966.14 *The above scenario is for illustration purposes only and not an indication of guaranteed profit. Terms and conditions apply. For more information, please contact your dealer’s representative or visit our branch

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