Margin Calculation Example
Customers enter a funds worth IDR 200 millions.
Cash Transaction


01-Jul (Prices Buy)

 

07-Jul (Prices Rise)

Stock

Qty

Price

Value

BUMI

5,000

6,400

32m

ISAT

10,000

6,600

66m

TLKM

12,000

8,000

96m

total

194m

 

Price

Value

7,050

35.25m

6,900

69m

8,400

100.8m

total

205.05m

Budget       194 millions

Borrowing           Profit 11.05 millions

Collateral 200 millions

Return = IDR 11.05 millions / IDR 200 millions = 5.525%

With 200 millions customers and funds can transact margin worth 400 millions.

Transaction with Margin

01-Jul (Prices Buy)

 

07-Jul (Prices rise)

Stock

Qty

Price

Value

BUMI

10,000

6,400

64m

ISAT

20,000

6,600

132m

TLKM

24,000

8,000

192m

total

388m

 

Price

Value

7,050

70.5m

6,900

138m

8,400

201.6m

total

410.1m

Budget         388 millions

Borrowing   188 millions    Profit 22.1 millions

Collateral   200 millions

Return = IDR 22.1 millions / IDR 200 millions = 11.05%

By using margin accounts, customers get a higher return.

Return : Normal 5.25.%
             Margin 11.05.% - Interest margin

*calculation doesn't include all fees and interest margins.