About Us

Founded in 2010, Capital TRUST Credit (Pvt) Ltd is a Margin Trading Provider licensed by the Securities and Exchange Commission of Sri Lanka. Capital TRUST Credit (Pvt) Ltd provides Margin Trading Facilities exclusively to the clients of its group company Capital TRUST Securities (Pvt) Ltd. Capital TRUST Credit (Pvt) Ltd pioneered in offering margin trading facilities to retail investors and currently has over 1,000 accounts.

What is Margin Trading?

Opening and operating a Margin Trading Account

In order to obtain a Margin Trading facility the client has to fill up a Margin Trading application form and enter in to a Margin Trading agreement,which is a tri-partite agreement between the margin trading provider, the client and the stock brokering firm.

Upon entering in to the Margin Trading agreement the client is offered a margin trading facility with an upper limit based on the value of the existing share portfolio. The client is allowed to purchase shares up to the limit subject to a margin of 50% of the value of the share portfolio pledged.

By utilizing the margin trading facility the investor can settle the outstanding balance remaining with the broking company or/and purchase additional securities subject to the upper limit of the margin trading facility and a margin of 50% of the value of the portfolio pledged.

All the purchases and sales that are carried out with the stock broking company are settled by Capital TRUST Credit (Pvt) Ltd on the settlement day which is on the third market day after the transaction takes place, with a seamless transfer of funds between the stock broking company and Capital TRUST Credit (Pvt) Ltd.

Further upon grating the margin trading facility the client is offered the access through the internet to proprietary Margin Trading system of Capital TRUST Technologies (Pvt) Ltd,where the clients can view the relevant records pertaining to the their margin trading facility including Loan Account statement, Portfolio Statement, Interest Account Statement, Margin Status Report etc.

Advantages of Margin Trading

Margin trading provides numerous advantages to an investor and some key benefits associated with margin trading are as follows.

Increased Buying Power - Investing with a margin trading facility allows an investor to purchase a greater number of securities than been able to purchase with own funds, thereby giving a larger exposure to the market and the possibility of greater returns whilst diversifying the rick. Further the additional fundsavailableprovide the investor an opportunity to look for bargains available in the stock market and to benefit from it.

Flexibility on utilization and repayment - The investor could utilize only the amount required for the investmentrather than drawing a fixed amount and there are no minimum monthly payments or regular repayment criteria on a margin trading facilities. The utilization and the repayment could take place as per the investor's discretion which provides a greater flexibility over many other financial products.

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