Discretionary Financing (DF)

Stretch your holding power at a lower cost!

Longer settlement period
DF allows clients to settle their outstanding purchases at any time up to 12:30 pm on T+7.
Flexibility
Clients will have a longer period to settle for the stock purchased and the flexibility in terms of trading strategy and portfolio management.
Lower Cost
Fees incurred on DF are generally lower than brokerage fees incurred on multiple purchases and sales contract.
Normal Trading
for holding the position to > T+6
(Contra Period T+2)
  • Cost incurred on 3 BUYS & 3 SELLS contract as illustrated below
  • Buy and sell prices are subject to market fluctuation
T
1st Buy
T + 1
T + 2
T + 3
1st Sell*
2nd Buy
T + 4
T + 5
T + 6
2nd Sell*
3rd Buy
T + 7
T + 8
3rd Sell
Contract Value: RM101,000Brokerage fee: 0.21%
Brokerage Fees
(0.21% x 6 transactions of RM 101,000)		 RM 1,272.60
Stamp Duty & Clearing Fee RM 787.80
Total Cost RM 2,060.40

*Assuming sale transactions are on force-selling day (T+3)

Discretionary Financing Trading
(Contra Period T+7)
  • Cost incurred only for 1 BUY & 1 SELL contract as illustrated below
  • With DF, you only lock-in 1 BUY price
T
T + 1
T + 2
T + 3
Auto Convert to DF
T + 4
T + 5
T + 6
T + 7
Settlement Day
T + 8
Force Sell Day
Contract Value: RM101,000Brokerage fee: 0.21%
Brokerage Fees
(0.21% x 2 transactions of RM101,000)		 RM 424.20
Stamp Duty & Clearing Fee RM 262.60
DF Fee
(RM101,000 x 0.25%)		 RM 252.50
DF Interest
(RM101,000 x 8% x (7/365 days))		 RM 154.96
Total Cost RM 1,094.26

*DF interest is calculated based on calendar days

1 DF Trading Cycle = 3 Normal Trading Cycles

Total Cost Savings with DF
(RM 2,060.40 - RM 1,094.26)
RM 966.14
*The above scenario is for illustration purposes only and not an indication of guaranteed profit.
Terms and conditions apply. For more information, please contact your dealer's representative or visit our branch
© 2021 Affin Hwang Investment Bank Berhad (197301000792)
Out think. Out perform.
Stamp Duty
Category Instrument Stamp Duty
(a) share or stock Ordinary share, Preference share, Loan Stock, Exchange Traded Bond & Sukuk, Bond RM1.50 for every RM1,000 or fractional part of RM1,000 of value, subject to maximum of RM1,000
(b) marketable securities Company warrant, Structured warrant, Right (OR, LR), REIT, Closed End Fund, Stapled Securities RM1.00 for every RM1,000 or fractional part of RM1,000 of value, subject to maximum of RM200
Exempted Exchange Traded Fund (ETF) listed in Bursa Malaysia Exempted until 31 Dec 2025