More margin calls and stopouts in April as Trump tariffs rattle markets
Investors who have incurred losses in that month have been able to reduce their losses in May, say brokerages
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[SINGAPORE] Several brokerages across Singapore observed up to double the number of margin calls and stopouts on such trades in April after US President Donald Trump administration’s “Liberation Day” tariffs roiled markets globally.
Margin trading allows investors to borrow funds from brokerages to buy more stocks than they can afford with their own capital, using their existing portfolio as collateral. Interest rates for borrowed funds typically range from 3 to 6 per cent per annum across brokerages in Singapore.
If the value of the position falls below a certain threshold, the brokerage will issue a margin call, asking the investor to deposit more funds or sell off assets to restore the required margin ratio.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Beijing’s calculated silence on the Iran war
Shelving S$5 billion office redevelopment plan proved ‘wise’ as geopolitical risks mount: OCBC chairman
Vietnam formalises new state leadership, redefining ‘four pillars’ power balance
