Securities Margin Trading Services Frequently Asked Questions

With margin trading, you only need to put up a fraction of the total cost when you buy shares. Because you have borrowed money to buy shares, these shares would be held as collateral. For cash trading, you need to have sufficient funds in your settlement account when you place a buy order.

Yes. But please note that all shares purchased through the margin trading account (whether purchased with margin lending facility or not) will be used as collateral. This means these shares may also be sold during forced liquidation should such situation occur.

Besides SMS, we will not notify you separately for margin top up. Please note that if the price of the marginable stock falls, margin call may be triggered. You should be fully aware of the market situation and your account status.

Our margin call is to remind you of your current account status and to suggest a margin top up. Your account will be liquidated without prior notice when the margin ratio rises to 120%. You should be fully aware of the market situation and your account status.

You should use cash to top up your margin account. Margin ratio will be recalculated after the cheque has been cleared and the deposited stock confirmed.

We will conduct a valuation on your shares. If margin ratio rises to 120% or above, we will liquidate your account without prior notice.

No. You should be fully aware of the market situation and your account status.

Same level of transaction fees apply to both Margin Securities Account and Cash Securities Account. Debit interest rate is charged for the outstanding loan amount under Maximum Loanable Value. If the utilized loan exceeds the Maximum Loanable Amount, the account will be overdrawn. Excess Margin Interest Rate will be applied on the overlimit.

No interest will be charged for this transaction if the sale proceeds can cover the entire overdrawn amount.