About Saudi Market Financing
What is Saudi Margin ?
Margin allows investors to borrow funds from a broker—including Shariah-compliant financing options—to boost their buying power. With a margin account, investors leverage borrowed capital to trade larger positions, which can amplify both potential gains and losses.
In the Saudi market, margin acts as collateral set aside in your portfolio, enabling you to trade larger amounts using leverage.
How Can Saudi Margin Trading Help You?
- Diversify your portfolio and trading strategies
- Separate risk into different portfolios
- Increase your potential returns
- Boost your buying power with leverage
What Does Sahm Offer?
- Fully Shariah-Compliant Products: Choose Murabaha Margin trading.
- Zero Commissions: Select Free Margin trading.
- Transparent Pricing: Clear costs with zero hidden fees.
- Multiple Contracts: Hold several margin contracts simultaneously.
- Flexible Renewals: Easily renew contracts near maturity.
- Early Termination: Exit annual contracts anytime per Terms and Conditions.
How Margin Amplifies Your Returns?
| Without Margin | With Margin | |
| Principal | SAR 10,000 | SAR 10,000 |
| Facility Limit | 0 | SAR 10,000 |
| Stock Price | SAR 100 | SAR 100 |
| Total Shares You Can Buy | 100 | 200 |
| Total Position Value | SAR 10,000 | SAR 20,000 |
| If stock price increases to SAR 130 and position is sold: | ||
| Total Sale Value | SAR 13,000 | SAR 26,000 |
| Net Profit | SAR 13,000 - SAR 10,000 = SAR 3,000 | SAR 26,000 - SAR 20,000 = SAR 6,000 |
| Return on Investment | 3,000 / 10,000=30% | 6,000 / 10,000=60% |
*Fees and commission are not charged.
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