The market watchdog Capital Market Authority (CMA) will allow only select brokerage firms to carry out margin trading (or secured trading as it is called), said a top-level official of CMA.
“All brokerage firms will not be allowed to carry out such trading. Brokerage firms are required to get a separate licence for collateral trading (or margin trading) from the CMA. They have to apply for it,” Abdullah bin Salem bin Abdullah al Salmi, executive vice-president of the Capital Market Authority (CMA) told Times of Oman.
Margin trading allows investors to borrow money from a broker to purchase stocks, using their investment as collateral.
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