Funding

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Funding of stock trading

What is a margin account?

A margin account allows you to buy securities with borrowed funds. You can apply to set up a margin account with Netfonds. The amount of credit available to you is determined by the margin equity on your account as well as the characteristics of the specific securities that you purchase. If you invest in securities with low volatility and high liquidity, you will be able to finance more of your investment with credit from Netfonds. Here you can find a list of equity margin requirements on individual securities. Additionally, Netfonds offers dynamic margin requirements, as a diversified portfolio gets margin requirement discount. Read more dynamic margin requirements here.

What should I know before I apply for a margin account?

Purchasing securities on credit increases the risk of your investment. There are no fees on having a margin account, but Netfonds charges interest on credit. Interest rates are found in our price list. To apply for credit, you must fill out an investment profile. You are required to have prior experience with securities trade. It is important that you understand the terms and conditions, and that you acknowledge the risks of trading with credit.

How does a margin account work?

Your margin equity equals the market value of your marginable securities, plus cash minus your current credit. Your margin equity calculation is found under My Account > Account information on our websites, and also directly in the order form. You can purchase securities on trading as long as the margin requirement is met. The overall equity margin requirement is calculated as the the sum of the marked value of securities weighted by the appropriate percentages. Trading securities on credit means that both your losses and gains are amplified.


Example:

You purchase a security with marked value 1 000 000 NOK with 500 000 NOK of cash equity and 500 000 of credit from Netfonds (i.e. gearing 2 times). If the security value rises by 15%, your new equity is 650 000 NOK, which implies a 30% positive return on equity. If the security value falls by 15%, your new equity is 350 000 NOK, which implies a 30% negative return on equity.

Note: We have the right to regulate your account when you are buying or selling, and to choose which securities we buy or sell to keep the loan secure, if the minimum equity is not met.

Apply for funding

Terms

Følgende vilkår gjelder (Rammeavtalen § 2.6):

Innkjøpskreditt

a) Netfonds Bank (NF) tilbyr innkjøpskreditt ved kjøp av finansielle instrumenter gjennom NF. Kreditten er tilknyttet en bankkonto. NF er ikke forpliktet til å yte kreditt. Kreditt er uansett betinget av at det ikke foreligger mislighold fra kunden. Kunden har ikke angrerett etter gjennomført handel på kreditt.

b) Kundens forpliktelser overfor NF som følge av innvilget kreditt er sikret gjennom sikkerhetsstillelsen i pkt 1.5. NF beregner et sikkerhetskrav for benyttet kreditt. Ved beregning av sikkerhetskrav vil NF fastsette og bruke en belåningsgrad for de finansielle instrumenter som er kjøpt inn og/eller stilles som sikkerhet. Kun finansielle instrumenter registrert på pantsatt VPS- konto og notert på regulert marked vil bli godtatt. NF kan fritt endre belåningsgrad.

c) Dersom verdien av stilte sikkerheter faller under de fastsatte sikkerhetskrav, skal tilleggssikkerhet stilles umiddelbart. Tilleggssikkerhet kan bestå av finansielle instrumenter som registreres på pantsatt VPS-konto, kontantinnskudd på Låntagers klientkonto hos Långiver, eller annen sikkerhet som Långiver finner tilfredsstillende. Det er kundens ansvar å sørge for at de fastsatte sikkerhetskrav er oppfylt til enhver tid. Dersom ikke nødvendig tilleggssikkerhet er stillet innen fristen, foreligger det vesentlig mislighold.

d) Innvilget kreditt løper inntil 30 dager. NF beslutter ved utløpet av kredittperioden om den skal forlenges for tilsvarende periode videre. Kreditten kan sies opp av NF med to ukers varsel.

e) Gjeldende rentesats for innkjøpskreditt vil til enhver tid fremgå på NFs webside. Rentesatsen kan endres med en - 1 - dags varsel og vil gis virkning for alle kreditter, herunder eksisterende kreditter. Renten forfaller til betaling den siste dag hver kalendermåned, uavhengig av tidspunktet for opptak av det aktuelle Lån. Dersom renter ikke betales ved forfall, vil renter bli tillagt utestående rentebærende hovedstol med virkning fra den 1. i hver måned, og derved bli rentebærende. Alle påløpte og ubetalte renter forfaller ved opphør av låneforholdet. Ved for sen betaling påløper forsinkelsesrente med den rentesats som er bestemt etter lov om renter ved forsinket betaling.

f) Med mindre annet er fastsatt i lov eller forskrift, kan NFs krav mot Kunden fritt overdras.

Capital requirements

Shorting

What is a short sale?

A short sale means selling a share you do not own, with the intention of buying it back. The investor profits from a decrease in value, and loses money from an increase in value. This makes shorting attractive in periods where the market value decreases.

A brokerage firm can only convey the sale of financial instruments that the customer does not own if the customer has access to the financial instruments, and the firm is ensured delivery at the agreed point time. We fulfill this requirement by offering our customers to loan us securities that we may again loan to customers that wish to short sell, provided sufficient collateral for the one loaning us securities. Netfonds guarantees repayment. Contract notes will be issued to both the one borrowing shares, and the one lending them out.


Risk

As there is no limit to how much a share can increase in value, one can theoretically lose a limitless amount of money when shorting. In comparison, when buying a share, your loss is limited to the value of the share.


Terms

A capital requirement in shares or cash is needed when shorting, in addition to the proceeds of the short sale remaining on an account at Netfonds until the repayment/reacquiring is completed. The overdue notice routine, in this case by stock value increase, is the same as for stock trading. If a sale must be completed, we have the right to choose which shares we buy or sell to keep the loan secure.

To see a list of shortable stocks, press the button bellow

Shortable stocks

Securities lending

Earn 2.25% by lending your securities

Loan us your shares, and earn a 2.25% interest of the borrowed shares. The borrower will be Netfonds Bank AS.

Remuneration

In addition to the interest of 2.25%, you will be paid 0.1% of the market value of lended stocks.

Contract duration

The minimum contract duration for lended shares is 7 days.

About the transaction

When loaning securities, the shares are transferred via Netfonds from the VPS account of the one giving the loan to the VPS account of the one receiving the loan. When the loan period is finished, the shares are transferred back to the VPS account of the one giving the loan. A contract note will be issued for the loan transaction and for the reacquiring of the securities.

A security loan does not count as a taxable realisation.

Guarantee

Netfonds acts as guarantor for the reacquiring of borrowed shares at the right time. Netfonds also has an insurance policy that covers potential losses. The insurance covers 200.000 NOK per insurance case per customer, with a total maximum of 25 million NOK per customer.

Tjen 2,25% på dine aksjer