Share Financing- Understanding your risks

It is important that you fully understand the risks involved in trading securities and/or maintaining a margin loan on a securities financing (margin trading) facility.

DBS Bank Margin Trading Account offers you a credit line which you may use for the purchase of securities and/or allows you to pledge securities to borrow funds.

While borrowing to fund the purchase of securities (leverage) enables you the potential to make impressive profit, you may incur a substantial loss if the market moves against you.

If the value of the securities held as collateral falls below the approved margin of financing, you will be required to provide additional funds (cash and/or securities) to top up your margin facility. If the top up is not done within the prescribed time, your collateral held in the margin facility will be liquidated, and you shall remain liable for any resulting deficit in your margin facility.

Before entering into any transactions using your margin facility, you should consult your own advisor(s) with regard to legal, regulatory, tax, financial and accounting matters to the extent that you consider it necessary, and make your own investment decision(s) [including any decision regarding the suitability of this margin facility for your needs] based on your own judgement and advice(s) from those advisor(s) you consider necessary.

Should you choose not to seek any advice from your advisor(s), you should consider carefully whether this margin facility is suitable for you. DBS Bank Ltd, or any of its related companies or any individuals connected with the group accepts no liability for any direct, special, indirect, consequential, incidental damages or any other loss or damage of any kind arising from any use of the information herein (including any error, omission or misstatement herein, negligent or otherwise) or further communication thereof.

This document is published for information and general circulation only and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person. Information is correct at time of printing.