Margin Trading

Definition of Margin Trading

Margin trading is an account where the client borrows cash from a brokerage company to purchase stocks in a margin account, with the purchased stocks serving as collateral. If the margin account balance falls below a certain level, the client is required to deposit more cash or sell a portion of the stocks.

Benefits of Margin Trading with Dlala Brokerage

  •  Earn 1 Qatari Riyal for every 1 Qatari Riyal in the margin account.
  •  Free financing with no fees or interest.
  •  For a duration of 10 business days.
  •  Receive a monthly rebate commission of 50% for 3 months.

Stock Pledging

Stocks purchased with margin financing cannot be pledged. Clients can sell stocks at any time using the electronic trading systems available.

Risks of Margin Trading

Trading on margin without prior knowledge of the risks involved can lead to significant losses. Clients should read the margin trading rules and be aware of the expected risks.

Margin Stock Profits

Clients can earn profits from margin stocks, increasing cash dividend distributions.

Requirements to Open a Margin Account with Dlala Brokerage

  •  Must have an active trading account with Dlala Brokerage.
  •  Individuals must be at least 18 years old.
  •  It must be original and not affiliated with an agent
  •  Must not have a margin account with any other brokerage firm.
  •  Minimum deposit of no less than 10,000 Qatari Riyals (stocks/cash).

Stocks Not Allowed for Margin Trading:

  • Ahli Bank
  • Zad
  • General Insurance
  • Cinema
  • A’amal
  • QLM
  • Al-Faleh Educational
  • (Others)

Additional Notes:

  •  Clients can switch between accounts by selecting the Margin Trading account in the Users section.
  •  Margin settlement will occur based on the agreement with the client after the specified 10-day period.
  •  When placing a purchase order in the Margin Trading account with the full balance, the system will calculate the entire cash balance with the margin.
  •  The maximum allowable client financing in the margin account is 3 million riyals.
  •  Clients will receive SMS notifications from the company 48 hours and 24 hours before the due date.
  •  Clients will also receive notifications of maintenance margin drops below the specified percentage, requiring adjustments within 48 hours.