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What is Margin Trading?

Margin trading is an investment product which provides clients with access to cash or stock credit facilities from NCB Capital in order to increasing their purchasing power and take capture investment opportunities to trade in eligible shares listed on the Saudi capital market (Tadawul) against providing collateral from the client's investment portfolio. However, margin trading involves a high degree of risk if the value of the portfolio investment assets goes down, which may require the client to inject more cash or stocks to avoid incurring losses.

Margin trading products exposes traders the potential to earn higher returns by using financial leverage. In the other hand, performing such activities involve a high degree of risk If shares held in the client account decline in value, he may be required to inject additional cash or marginable securities to prevent from selling.

The following example illustrates the effect of leveraging on the client account, in case the market is performing well:

A client has SAR 1,000,000 and wants to buy SABIC shares at SAR 100 per share

  1. Without using Margin Trading product
    If the investment portfolio worth SR 1,000,000 The client can buy 10,000 shares at SR 100 per share, if share price increases by 20%, the client’s profit will be SAR 200,000.
  2. With using Margin Trading product - leverage 1:1
    If the client uses Margin trading, his purchasing power will double and the value of the investment portfolio will become SR 2,000,000 (1,000,000 SR from client + 1,000,000 SR as margin trading facility) The client can buy 20,000 shares If share price increases by the same value, the clients will double their profit to SAR 400,000 without fees and commisions.
Conditions and requirements of Margin Trading product:

The client must satisfy the following requirements and documents:

  • NCB Capital client
  • The value of the client’s investment portfolio should be at least SR 500,000 as NCB Capital evaluated (either acceptable stocks or Cash)
Margin Trading request

Margin trading application can be submitted via:


NCB Capital Company (NCBC) is authorized by the Capital Market Authority (CMA) under license No. (37-06046), with its Head Office address being NCB Building, King Saud Road, P.O. Box 22216, Riyadh 11495, Kingdom of Saudi Arabia.
The value of the security may be subject to sudden significant decline that may result in total loss of the invested amount. Moreover, the investor's loss may not be limited to the total amount he or she has invested, but may also have to pay more. The income of the security may change and a portion of the invested capital may be used to pay that income. Prices, value or income may go down and the investor may get back less than the amount originally invested. in addition, service charges/ fees shall be applicable to the product.
This product may not be suitable for all recipients of this offer. if you are in doubt on relation hereof, you should consult your investment advisor.