Please note that the following answer only applies to clients of our German broker offering.
The credit line is calculated as the sum of all positions valued at market prices, each multiplied by the loan-to-value ratio. Securities with low price fluctuations (volatility) generally have a higher loan-to-value ratio, while those with higher price fluctuations have a low or no loan-to-value ratio.
Non-binding presentation of loan-to-value rates by asset class. Refer to the custodian's loan agreement for binding loan-to-value rates. Please note: The lending rates for individual securities may differ and may be adjusted by the custodian bank.
ETFs: 75%
Bonds: 80%
Equities: 40-75%
Derivatives: 0%
Crypto ETPs: 0%
Cash balances: 0%
Example 1:
Your portfolio value is €50,000. The credit limit is also €50,000. €40,000 is invested in ETFs, the rest is cash on the broker account. The credit line is therefore €30,000 (€40,000 in ETFs * 75% + €10,000 credit balance * 0% = 30,000 €) and is always capped at the credit limit.
Example 2:
Your portfolio value is €50,000. The credit limit is also €50,000. Of this, €30,000 is invested in ETFs, and the remaining €20,000 is held in less liquid small cap stocks (loan-to-value ratio 40%). The credit line is therefore €30,500 (€30,000 in ETFs * 75% + €20,000 in small cap stocks * 40% = €30,500) and is always capped at the credit limit.
Example 3:
Your portfolio value is €50,000. When applying for credit, a credit limit of 12,000 € was set. 40,000 € is invested in ETFs, the rest is cash on the broker account. The loan value of the securities (€40,000 in ETFs * 75% + €10,000 credit balance * 0% = €30,000) exceeds the credit limit. The credit line therefore amounts to €12,000. The credit limit can be increased on request if necessary.
Non-binding presentation of loan-to-value rates by asset class. Refer to the custodian's loan agreement for binding loan-to-value rates. Please note: The lending rates for individual securities may differ and may be adjusted by the custodian bank.
ETFs: 75%
Bonds: 80%
Equities: 40-75%
Derivatives: 0%
Crypto ETPs: 0%
Cash balances: 0%
Example 1:
Your portfolio value is €50,000. The credit limit is also €50,000. €40,000 is invested in ETFs, the rest is cash on the broker account. The credit line is therefore €30,000 (€40,000 in ETFs * 75% + €10,000 credit balance * 0% = 30,000 €) and is always capped at the credit limit.
Example 2:
Your portfolio value is €50,000. The credit limit is also €50,000. Of this, €30,000 is invested in ETFs, and the remaining €20,000 is held in less liquid small cap stocks (loan-to-value ratio 40%). The credit line is therefore €30,500 (€30,000 in ETFs * 75% + €20,000 in small cap stocks * 40% = €30,500) and is always capped at the credit limit.
Example 3:
Your portfolio value is €50,000. When applying for credit, a credit limit of 12,000 € was set. 40,000 € is invested in ETFs, the rest is cash on the broker account. The loan value of the securities (€40,000 in ETFs * 75% + €10,000 credit balance * 0% = €30,000) exceeds the credit limit. The credit line therefore amounts to €12,000. The credit limit can be increased on request if necessary.