For customers who select brokerage services through QUIK, Sberbank offers unsecured transactions for the purchase and sale of securities in the Main Market sector of the Moscow Exchange Group.
The unsecured transactions service enables customers to perform operations with securities in volumes exceeding the amount of the customer’s own assets (monetary funds and/or securities):
- purchase securities to a value exceeding the balance of the customer’s brokerage account (even with a zero balance);
- sell securities not included in the portfolio.
The service enables customers not only to increase their profits in case of growth in price, but also to draw income from operations with securities when the prices on the stock exchange go down.
Sberbank offers its customers funds or securities for unsecured transactions without any fee, provided the unsecured position is closed within the trading day.
If an unsecured position is moved to the following trading day, Sberbank of Russia will charge a fee for the additional resources (monetary funds and/or securities) in accordance with Special Repo rates and tariffs.
For more information on the service, the guidelines on unsecured transactions and an overview of special Repo transaction conclusion and execution, see part 3 “Trading Operations” of the Brokerage Service Terms and Conditions of Sberbank of Russia.
Please note that unsecured transactions carry high risks of partial or full loss of the invested funds. In case of any negative market developments, losses may be higher than if the customer conducted operations only with their own assets.
You are offered the opportunity to make unsecured transactions with the maximum own-to-borrowed funds ratio (also known as "leverage") of 1:1.
In turn, this means that:
- if you make an unsecured transaction for the purchase of securities, the debt (the client's debt to the broker) related to funds shall not exceed 1/2 of the market value of securities used as loan coverage;
- in the case of sale of securities provided by Sberbank, the debt (the client's debt to the broker) related to securities shall not exceed 1/2 of the market value of securities used as a loan coverage and the balance of funds on your brokerage account.
If you want to make transactions with a higher share of borrowed funds, Sberbank may assign you to the Higher Risk Customer Category. The maximum ratio of own and borrowed funds (leverage) for this category is established at 1:3. The procedure for the transition to the Higher Risk Customer Category is provided for by the Brokerage Service Agreement between you and Sberbank of Russia.