Margin Trading

FALCOM Financial Services promotes its leading role as a provider of brokerage and financing services by offering various margin financing programs

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Murabaha

A Shariah-complaint financing from FALCOM, providing our investors with the opportunity to obtain financing in line with their investment portfolio or cash available in their trading account

Features: 

  • Predefined profit margin to estimate funding limits
  • No fees for funding application
  • No minimum value of trading required
  • Investors can benefit from the full amount of Murabaha or part of it
  • Financing ratio reaches 1:1 against the investment portfolio or cash

 

 

Qard Al Hassan

Free of profit Shariah-complaint financing aims to assist FALCOM customers in overcoming their financial problems

Features: 

  • Zero profit rate on the facility
  • No fees for funding application
  • The Loan ratio reaches 1:1 against the investment portfolio or cash
  • Investors can take advantage of the entire loan amount or part of it

 


The following example illustrates the effect of Murabaha or Qard Al Hassan on the client account: (in case the market is performing well)

 

Margin trading involves a high degree of risk if the value of the portfolio investment assets goes down, which may require the client to inject more cash or stocks to avoid incurring losses.

 

A client has SAR 1,000,000 and wants to buy XYZ shares at SAR 100 per share

 

Without using Murabaha or Qard Al Hassan Finance

If the portfolio is worth SR 1,000,000, the client can buy 10,000 shares at SR 100 per share, if share price increases by 20%, the client’s profit will be SAR 200,000.

 

With Murabaha or Qard Al Hassan Finance 1:1 
With Murabaha or Qard Al Hassan, the purchasing power will double and the value of the investment portfolio will become SR 2,000,000 (1,000,000 SR from client + 1,000,000 SR as Murabaha or Qard Al Hassan facility), the client can buy 20,000 shares and if share price increases by the same value, the clients will double their profit to SAR 400,000 without fees and commissions.

 

  Without Murabaha or Qard Al Hassan With Murabaha or Qard Al Hassan Notes
Client Cash or value of Securities SAR 1,000,000 SAR 1,000,000  
Purchasing Power SAR 1,000,000 SAR 2,000,000 SAR 1,000,000 from client + SAR 1,000,000 as Murabaha or Qard Al Hassan facility from FALCOM
Stock Price SAR 100 per share SAR 100 per share  
Number of Stocks that can be bought 10,000 shares 20,000 shares  
Stock price Increased by 20% SAR 120 per share SAR 120 per share  
Profit SAR 200,000 SAR 400,000  

 

 

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Download Tadawuly Apps on your smart devices and enjoy trading anywhere

TadawulySmart iOS App Tadawuly SmartTrader Android App

Open an Account