In the world of stock investing, understanding funding facilities and risk management is a crucial instrument for every investor. IndoPremier provides various facility options that allow clients to optimize their purchasing power, whether through the use of available cash or collateralized stock portfolios.
These various types of facilities include the use of ready-to-use cash, funds from unsettled sales, to margin facilities that utilize stock valuations as collateral. Each facility has its own characteristics, including potential bailout financing that arises if funds are used beyond the specified limits or for specific instruments such as mutual funds.
It is important for investors to realize that using limit or margin facilities carries consequences in the form of 'forced-sell' risk or forced selling of collateralized assets if the liability ratio reaches the established threshold. For example, in a margin facility, the company applies a strict risk management policy if the liability ratio reaches 75 percent.
To maintain investment stability, IndoPremier sets portfolio limitations based on regulations from the Indonesia Stock Exchange (IDX) and BAPEPAM-LK Regulations. Investors planning to apply for additional funding facilities are expected to promptly complete the required documents sent via email so that the verification process can be conducted immediately according to applicable operational procedures.
