Trade Stocks, DLCs and Structured Warrants on Phillip Nova and TradingView

Phillip Nova’s Shares Margin Trading allows you to maximise your purchasing power by financing the purchase of marginable securities held in your trading account. Marginable securities refer to stocks and ETFs accepted by Phillip Nova as having collateral value for financing purposes.

A haircut is applied to these securities as a risk buffer. The discounted (net) value is then added to your buying power. All financing is subject to the prevailing haircut, security eligibility, and account‑level financing limits determined by Phillip Nova.

By using margin, you potentially get to:

• Amplify your investment capacity
  • Take larger positions with the potential for higher returns.
• Generate positive carry
  • Earn dividends or coupons that exceed the cost of financing.
• Access multi-currency financing
  • Borrow in the traded currency to create a natural hedge against currency risk.

By using margin, you assume additional risks, including but not limited to:

• Leverage amplifies losses
  • While you can invest more, losses are magnified in the same way as gains. You may lose more than your initial capital.
• Market Volatility and Gap Risk
  • Sharp overnight movements or market gaps can cause losses that exceed your available margin before you have a chance to respond.
• Margin Calls and Forced Liquidation
  • If the value of your marginable securities falls, you may be required to top up your margin at short notice. Phillip Nova can liquidate your positions without prior notice to meet margin requirements, and you remain liable for any shortfall.
• Carry trades can reverse
  • If dividend yields fall or financing costs rise, a once-profitable carry may turn negative.
• Interest Rates Risk
  • Financing costs (interest rates) are variable and can rise unexpectedly, eroding potential returns or turning profits into losses.
• Liquidity Risk
  • In times of market stress or low trading volumes, it may be difficult to sell your securities quickly without substantial price impact, especially during forced liquidations.
• FX risk
  • Foreign-currency movements can impact both your returns and financing cost, as changes in exchange rates impact the value of your holdings and borrowings.
• Regulatory and Haircut Adjustments
  • Phillip Nova may change the eligibility or haircut of marginable securities at any time. A sudden increase in haircut could cause an instant margin shortfall, triggering margin calls or liquidations.
• Concentration Risk
  • Holding a few securities as marginable assets can lead to significant exposure if those securities experience sharp declines.

Illustrations of how leverage increases your investment capacity, potentially leading to higher returns.

Scenario 1 – Trading with Cash:

1. You have S$10,000 cash in your trading account.
2. You purchase 10,000 shares at S$1, totalling S$10,000 (10,000 shares x S$1).
3. Your entire cash is used, so your buying power is reduced to S$0.
4. The share price rises to S$1.25, and you sell your 10,000 shares for S$12,500
   (10,000 shares x S$1.25).
5. Gross profit less commission = S$2,500(S$12,500 shares proceeds – S$10,000 initial purchase cost)

Scenario 2 – Trading with Margin:

1. You have S$10,000 cash in your trading account.
2. You use margin to buy 20,000 shares at S$1, totalling S$20,000 (20,000 shares x S$1).
   
   1. This will result in a loan of S$10,000
      (S$10,000 initial deposit – S$20,000 shares purchased).
   2. With a 30% collateral haircut, that leaves a net collateral value of S$14,000
      (70% of S$20,000 collateral value)
   3. This leaves a remaining cash balance of S$4,000 (S$10,000 initial deposit – S$20,000 shares purchased + S$14,000 of net collateral value).
      This becomes your available buying power.

3. After 7 days, the share price rises to S$1.25, making your holdings worth S$25,000 (20,000 shares x S$1.25).
   
   1. Net collateral value increases to S$17,500 (70% of S$25,000).
   2. Buying power increases to S$7,500.
      (-S$10,000 loan + S$17,500 of net collateral value).
4. You sell your shares for S$25,000.
   
   3. Financing charges = S$9.59(S$10,000 loan x 5% p.a. x 7/365 days)
   4. Gross profit less commission = S$ 4,990.41(S$25,000 shares proceeds – S$20,000 initial purchase cost – S$9.59 financing charges).

Illustrations of how leverage increases your exposure to losses, potentially resulting in losses greater than your initial capital.

Scenario 3 – Trading with Cash:

1. You have S$10,000 cash in your trading account.
2. You purchase 10,000 shares at S$1, totalling S$10,000 (10,000 shares x S$1).
3. Your entire cash is used, so your buying power is reduced to S$0.
4. The share price falls to S$0.75, and you sell your 10,000 shares for S$7,500
   (10,000 shares x S$0.75).
5. Gross loss less commission = S$2,500(S$7,500 shares proceeds – S$10,000 initial purchase cost)

Scenario 4 – Trading with Margin:

1. You have S$10,000 cash in your trading account.

2. You use margin to buy 20,000 shares at S$1, totalling S$20,000 (20,000 shares x S$1).

   1. This will result in a loan of S$10,000
      (S$10,000 initial deposit – S$20,000 shares purchased).
   2. With a 30% collateral haircut, that leaves a net collateral value of S$14,000
      (70% of S$20,000 collateral value)
   3. This leaves a remaining cash balance of S$4,000 (S$10,000 initial deposit – S$20,000 shares purchased + S$14,000 of net collateral value).
      This becomes your available buying power.

3. After 7 days, the share price falls to S$0.75, making your holdings worth S$15,000 (20,000 shares x S$0.75).

   1. Collateral haircut reduces to S$4,500 (30% of S$15,000).
   2. Net collateral value reduces to S$10,500 (70% of S$15,000).
   3. Buying power reduces to S$500.
      (-S$10,000 loan + S$10,500 of net collateral value).

4. The next day you sell your shares for S$15,000.

   1. Financing charges = S$10.96(S$10,000 loan x 5% p.a. x 8/365 days)

   2. Gross loss less commission = S$5,010.96(S$15,000 shares proceeds – S$20,000 initial purchase cost + S$10.96 financing charges)

Phillip Nova applies several controls to promote prudent financing and risk management. These include application of collateral haircuts, security price caps (SPC), single‑security limits (SSL), and an account‑level maximum loan value (MLV). All parameters are subject to periodic review and may be adjusted at Phillip Nova’s discretion.

• Collateral Haircut – A discount applied to the market value of a security used as collateral. This helps ensure a safety buffer against market fluctuations, supporting responsible risk management.
  • For example, if a stock is worth S$100 and has a 30% collateral haircut, only S$70 of its value will be counted as collateral.
• Security Price Cap (SPC) – A cap on the collateral valuation of each margin‑eligible security. This prevents artificially inflated or volatile market prices from overstating the collateral value and helps manage downside risk.
  • For example, if a stock is trading at S$40 and has historically traded between S$10 and S$50, a price cap of S$80 may be applied.
• Single Security Limit (SSL) – A maximum collateral exposure per security to manage concentration risk.
  • For example, if a Single Security Limit (SSL) of S$50,000 is applied to a stock, and you hold S$100,000 worth of it, only S$50,000 will be counted towards your collateral value.
• Maximum Loan Value (MLV) – A limit on the total financing extended to your account.
  • For example, if your account has S$100,000 cash and the stock has a 50% collateral haircut, you would typically be able to purchase S$200,000 worth of the stock — borrowing S$100,000 from Phillip Nova. However, if a MLV of S$50,000 is applied, the maximum stock purchase would be limited to S$150,000.

You may apply for a Shares Margin Trading account as long as you are above 21 years of age.

If you are a new client to Phillip Nova, select Phillip Nova 2.0 Multi Asset Account as you begin your investment journey. When you get to the Account Confirmation page, select Shares (Margin) as your account type.

If you have an existing Nova trading account, you may opt-in for Shares Margin Trading on the Client Portal. If you have an existing MT5 trading account with Phillip Nova, you will need to apply for a Nova trading account for Shares Margin Trading.

If you have an existing Nova trading account, follow these steps to opt-in for Shares Margin Trading on Client Portal:

First, click on Shares Margin Trading in the right panel under Subscription.

Next, read and acknowledge the Risk Disclosure Statement and select Continue.

When your request meets the criteria for immediate approval, it will be approved on the immediately. You will see a banner displaying the time and date of your opt-in, and an email confirmation will be sent to you.

If your request doesn’t qualify for immediate approval, it will be reviewed internally. The banner will show that your request is under review, and you will receive an email confirming this status.

After the review, if your request is approved, you will see a banner displaying the time and date of your opt-in, and an email confirmation will be sent to you.

If your request is not approved after review, the banner will show no status, and you will receive an email notification of the decline

Margin-eligible securities can be identified with these icons on the Watchlist and the Order Ticket:

Alternatively, you may refer to the list of margin-eligible securities available here.

No, there is no need for an additional pledge of marginable securities to Phillip Nova.

Once your account is approved for Shares Margin Trading, any marginable securities in your trading account held under Phillip Nova’s custody will automatically be recognised as collateral to support additional share purchases.

Yes, you can. The value of your marginable securities will be converted into the traded currency at prevailing foreign exchange rates to determine your purchasing power.

However, if you buy securities in a currency you do not hold, it will create a currency deficit. To avoid interest charges, ensure you have sufficient equity balance in that currency.

You may refer to our prevailing financing rates published here.

No, Phillip Nova does not charge any account or platform fees for the use of Phillip Nova’s margin facility.

Financing charges will apply only if your account shows a shortfall — that is, when the sum of your Equity Balance and Initial Margin is less than zero. Charges are computed on the deficit amount in each respective currency.

You are deemed to have taken up financing when your Equity Balance is less than zero in any currency. Such a negative balance may arise when your securities purchases exceed your available Ledger Balance, or from realised or floating losses in derivative trading, commission, or other related trading fees and financing charges. Interest charges are computed based on any negative sum arising from your Equity Balance, less your Initial Margin, accrued daily on all negative balances until repaid.

Here are some scenarios to illustrate:

Yes, our Low Equity and Weekend Risk Policies are standardized across account types. Please find the our Margin Trading FAQs here.

Our Margin Call, Low Equity and Weekend Risk policies are standardised across account types. Please find our Margin Trading FAQs here.

Please find our Margin Trading FAQs here.

While transferring securities into Phillip Nova will increase your collateral base, it is generally not practical because our standard margin call policy typically requires settlement within 2 days.

We recommend that you refer to our Margin Trading FAQs here for more information on the available methods of fulfilling margin calls.

No, we do not facilitate trading with CPFIS-OA/ SRS. Phillip Nova will still act as custodian of assets for your securities purchased through us.

Corporate actions may affect the collateral value of your shareholdings. Phillip Nova will adjust financing eligibility, haircuts, and collateral values in accordance with its internal policies and the characteristics of each event.

If a corporate action has a significant adverse impact on the value of your holdings or overall portfolio health, your account may become exposed to a margin call or, in severe cases, low-equity liquidation.

The table below illustrates how certain types of corporate actions can affect a stock’s price and, consequently, the value of your portfolio. Actual results may vary from the examples shown.

*TERP = Theoretical Ex-Rights Price