Jump to content

Balfour Beatty margin


Oberonrcb

Recommended Posts

Hi 

 

Thanks for your question - a very good one relevant to recent movements.

 

Balfour Beatty (BBY) is FTSE 250 listed as opposed to the FTSE 100 listings of Rolls Royce (RR) & Taylor Wimpey (TW). As a general rule, we do have lower margin rates for FTSE 100 companies than for FTSE 250, as these tend to be larger and more liquid than their FTSE 250 counterparts.

 

Margin rates are decided on a number of factors though, including but not limited to current market volatility. Market Cap & liquidity have a big effect on the margin.

 

RR has a market cap of £12.75 Billion, TW a market cap of £6 Billion and BBY with a smaller value of £2 Billion.

 

To give you an idea of liquidity for these 3 companies: RR has traded a total volume of 1.8 million shares so far today. TW a volume of 2.5 million, with BBY coming in much lower at volume of 95,000 currently.

 

We do take risk and volatility into account, and adjust margin rates from time to time dependent on these factors. If RR or any other company were to become much more volatile than usual over a prolonged period, it is possible that we would raise margin rates at that point as a precaution.

 

I hope this helps explain things. Thanks again for your question.

 

Regards,

 

SimonC

Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      13,751
    • Total Posts
      68,547
    • Total Members
      57,417
    • Most Online
      5,137
      14/01/21 09:51

    Newest Member
    Houston
    Joined 25/01/21 04:35
  • Posts

    • I was wondering when would you use my English to undermine me, you took way too long. I guess it is because you think people read this thread, so you have to be careful. Someone like you would have used that trick earlier. Regarding the Russians, you are pasting screenshots without citing the source again. Come on... We have spoken about this. You can't keep posting dodgy screenshots from Twitter. You have a reputation to maintain.
    • Simple solution ... Lilith of Assyria  @LilithAssyria Reminder: Russia is fully open: * museums * restaurants * cinemas * theatres * gyms without or capacity limits * schools without /plexiglass or idiotic hybrid   How did Russia stop pandemic?! Simple: no asymptomatic testing beginning of December. That’s it, folks.       .
    • Hahaha, Deliberate misrepresentation of my posts and the persistent forwarding of strawman arguments is outright dishonesty. That's what you do and it is insulting and childish quite frankly. That's the point, you don't challenge anything, 'oh I don't like the NHS data you posted boohoo you must be bad'. FFS grow up. Try this again in intelligible English.  
×
×
  • Create New...