What is my Current LSR, Base LSR or Margin Call LSR?

A Loan to Security Ratio (LSR) is a gearing level percentage that identifies your level of loan liability in comparison to your loan security value, and is commonly used to assess the performance of your portfolio.

The three LSRs applicable to a CommSec Margin Loan are:

  • Current LSR which shows your current gearing level. It is your loan liability divided by the portfolio market value of security held on your margin loan (excluding security with 0% LSR), expressed as a percentage.
  • Base LSR is the maximum gearing level that your portfolio can reach based on the weighted average lending value of your loan securities. We do permit an additional gearing level buffer of 5%* to provide you time to review and adjust your portfolio before a Margin Call is triggered, which is at the Margin Call LSR.
  • Margin Call LSR is equal to the Base LSR plus the buffer amount of 5%*. When your Current LSR is equal to or exceeding the Margin Call LSR, you will be in Margin Call.

*The Buffer amount is subject to change and is advertised on the CommSec Margin Loan Accepted Securities List.

 

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