Educational guide · SGX
Singapore Margin Loans & Share Margin Financing: A Guide for SGX Shareholders
Short answer
Share margin financing is a margin loan from a broker or bank secured on SGX-listed shares in a margin account. The account is valued daily, concentration in one stock is usually capped, and a margin call can follow if values fall.
Frequently asked questions
Who offers margin loans on SGX shares?
Brokers and private banks offer margin lending on diversified portfolios. They usually cap concentration in one stock and can call margin daily. Structured share-backed financing from specialist capital providers is an alternative for large single-stock holdings.
Margin loan vs structured equity-backed facility: what is the difference?
A margin loan is open-ended, marked daily and usually full-recourse. A structured equity-backed facility is fixed-term, tailored to one holding and can be non-recourse.
What decides the terms for SGX-listed shares?
Mainly the stock's liquidity (average daily traded value), its volatility, the size of the holding relative to free float, any lock-up or trading restriction, and the tenor requested. Concentrated or less liquid holdings usually receive lower advance rates.
Related Singapore guides
- Singapore stock loans
- Singapore share-backed financing
- Singapore equity-backed financing
- Singapore block trades
See also
This guide is general information, not financial, legal or tax advice. It does not describe Squadron Capital's specific terms.