Your borrowing power is primarily determined by your blended Loan To Value amount or 50% of your portfolio value, whichever is lower.
Your borrowing power can increase above 50% of your portfolio value as your assets at Frec appreciate and/or if you transfer assets that have appreciated from an external margin account.
Example 1:
A customer transfers $100,000 worth of diversified securities with a blended LTV of 75%.
| Description | Amount |
| Portfolio Value (securities only) | $100,000 |
| Blended LTV amount | $75,000 |
| 50% of Portfolio | $50,000 |
| Maximum Borrow Amount | $50,000 |
Example 2:
A customer transfers $100,000 worth of diversified securities with a blended LTV of 40%.
| Description | Amount |
| Portfolio Value (securities only) | $100,000 |
| Blended LTV amount | $40,000 |
| 50% of Portfolio | $50,000 |
| Maximum Borrow Amount | $40,000 |
Note: When calculating your LTV, only your direct indices and self-managed positions are included. It does not include Cash, Treasury, or long short direct indices.
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