Margin Financing (Murabaha)
Through Riyad Capital Murabaha, the Sharia compliant product, you can obtain financing to increase the purchasing power of your portfolio and take advantage of opportunities in qualified shares listed in the Saudi market in return for providing guarantees (cash/shares) from your investment portfolio.
Margin Financing (Daily)
The daily margin product offers you access to free , sharia approved financing access to facilities to maximize the purchasing power of your portfolio and take advantage of investment opportunities in qualified shares listed in the Saudi market in return for providing guarantees (cash/shares) from your investment portfolio.
Example of trading with and without margin financing
An investor uses margin financing to increase his/her purchasing power in an effort to improve returns on his/her investments. The investor expects a rise in the price of the stock he wants to buy on margin, thus increasing profits by increasing the purchasing power gained from financing
Example:
| Without Financing | With Financing |
| Investment amount | 10,000 Riyal | 10,000 Riyal |
| In case of margin financing With a value equal to the invested amount. | 0 | 10,000 Riyal |
|
|
|
| Price of stock | 100Riyal | 100 Riyal |
| Number of shares to be bought | 100 | 200 |
| Total securities value | 10,000 | 20,000 |
| if the stock increases to 130 & perform sale |
| Selling value | 13,000 | 26,000 |
| Profit value | 13,000-10,000=3000 | 26,000-20,000=6000 |
| Return on investment | 3000/10000=30% | 6000/10000=60% |
*Fees and commission are not charged
To get the product, visit the nearest investment center of Riyad capital or Riyad Bank branch and fill in the product request form, for more information, visit our website (riyadcapital.com) or call the following number 920012299
Riyad Capital is a Saudi Closed Joint Stock Company with Paid up capital of SR 500 million, licensed by the Saudi Arabian Capital Market Authority NO.07070-37. Commercial Registration No: 1010239234. Head Office: Granada Business Park 2414 Al-Shohda Dist. – Unit No 69, Riyadh 13241 - 7279 Saudi Arabia.The value of the security is subject to continuous changes and can be subject to sudden and significant decline. In addition, it can be stopped or canceled in the financial market and/or from the list of companies accepted for trading. This may result in a loss equal to the amount invested, and the loss of the investor may not be limited to the full amount invested or deposited in the first place and may have to pay more. The value of the security may vary depending on the weight previously assessed, and the resulting positions must be covered by the investor to pay the difference. Service charges and fees apply to the product in accordance to the Terms and Conditions of the product. This product is highly risky and may not be suitable for all persons. Therefore, the investor is required to review the product Terms and Conditions and obtain appropriate legal, tax and financial advice before making any decision on dealing with it.Riyad Capital Company conducts activities in the field of financial and investment brokerage, and it is possible to provide investment services or have provided in advance during the past 12 months to one of the companies that deal with securities,Riyad Capital or its employees or one or more of its affiliates or customers may have a financial interest in the relevant securities.