New discovery to hedge

Just realized that I can hedge
cause I wanted to buy DBS shares
With share financing
But both Poems and OCBC are taking very long to open account
The way to hedge it to take a position with CFD
using my IG account, which was there all along
It really eases the anxiety,
when I am not sure when I can get my new accounts
and also fearful that the share price will go up
currently, DBS shares is below 20
it is a great price, as it has dividend yield more than 6%
and that is based on the old dividends
moving forwards, dividends may increase to 1.33
which will bring dividend yield to 7.3%

Later in the day, Singapore government will announce another stimulus package
Called Fortitude
Not sure how much will it cause DBS to rise
I am hoping to buy another 1000 DBS shares on CFD
as I hope to own 5k DBS shares coming out of the crisis.
Coincidentally, today is supposed to be the day we receive DBS dividends
Hopefully I am getting 2k if I am not wrong
Once I see it in my account, I might pump that money into IG again
and buy the other 1000 DBS CFD

Also did some stress testing on the CFD positions
The 1000 DBS shares that I buy,
if it falls to $18, it will incur a loss of $1400.
And good thing is it will not be margin called yet.
Maybe it is a good thing that I only have limited funds in IG account
It can be an auto stop loss
But to me, it may not be very likely
The price seems quite stable now
The SNP 500 is starting to breaking the resistance zone of 2975

So what does this have to do with the share financing account?
When the share financing account is set up, I will buy 500 shares each in Poems and OCBC
and every time I buy 500 shares, I will sell 500 shares in IG
So in a way, I am using the CFD positions as a hedge in case the price rise in future.

Nibbled Cromwell Reit

Its frustrating waiting for my share financing account
with Poems and OCBC
Using them because I want to use DBS shares as a collateral
and buy more DBS shares
To make myself feel a bit better
I bought a bit of Cromwell
After reading their Q1 report
Looks good

I think this is a first time I describe my purchase as nibble
only spent around 2k SGD
and it is done using share financing with DBS
will transfer 4k more worth of shares into that account

when times are good like now
when things are on discount
it is good to buy periodically
maybe fortnightly.

Mental stress test

Went to OCBC bank today
To open securities account
and also tried signing up for Peoms
Both for share financing
Peoms is surprisingly easy to sign up
but i had fear about put my biggest counter outside of CDP
but thought that it is a gd idea to put 1k shares in each for collateral
hopefully by the time they are set up, DBS is still at a good price

also did some mental stress test
and realization
that my DBS share financing account
should hold on about purchasing more shares
wanted to buy 500 OCBC today
as they have a lower non-interest income
which will not be affected so much by interest rate cut

so the calculation of the stress test
i injected 23k worth of shares into the dbs share financing
i bought 15k shares (capitamall, Cromwell, Aims)
but 5k (cromwell) is not marginable
the main thing is you have to imagine when shares fall 50%
less likely especially now that shares have already fallen 20%
but peace of mind is more important

so 23k + 10k = 33k (total asset value)
33k /  = 16.5k (another crisis hit, 50% drop)
16.5k / 15k = 110%, which is lower than 140%
and will trigger a margin call

I need 21k as the nominator, which is 4.5k extra
but it can be solved by adding cash funds
50% drop is unlikely at this moment
but it is always good to prepare mentally