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Margin Financing is The Provision of Loans to Customers for The Purposes of Investing |
Marginable Securities
Almost all securities quoted on the Hong Kong Stock Exchange are marginable. The margin percentage ratios vary, ranging from 10% to 70%.
Margin Call
Margin call is issued once the total collateral in the margin account falls below the outstanding balance. Margin call amount is equal to Outstanding Balance less Marginable Value. (Marginable value = portfolio value x margin percentage)
If clients fail to meet their margin call within the stipulated time, the company reserves the right to force sell shares without clients' consent.
If clients fail to meet their margin call within the stipulated time, the company reserves the right to force sell shares without clients' consent.
Interest Rate
Annualized percentage rate of standard margin loan is Prime rate+ 3%
How do I open a Margin Account?
All new account application forms must be signed in the presence of an authorized person in accordance with the SFC rules and guidelines.
Please have the following documents with you when opening a Margin Trading Account with us :
a. Identity card / passport
b. Residential address proof
Please have the following documents with you when opening a Margin Trading Account with us :
a. Identity card / passport
b. Residential address proof
Notes :
*Any securities that fall under suspension will carry zero value in the margin account.
*We preserve the rights to adjust the margin rate or cease the margin financing without further notifying customers.
# A margin call must be met either by depositing additional cash, marginable shares or liquidating shares.Margin call must be met within 2 business days.
