1. What is Margin Financing? How it works?
Margin Financing is a revolving credit facility on margin account. Clients can collateralize holding stocks for additional buying power, and the collateral ratio is depended on own portfolio valuation. Stocks listing on Hang Seng Index have the highest margin ratio (approx 50% to 70%).

2. What is the difference between Cash account and Margin account?
Unlike Margin account, cash account clients do not have financing facility, so they must deposit sufficient funds before trade. Also Margin account clients enjoy lower interest charges on overdue balance.

3. Where can I have the information about my margin account credit limit, terms and conditions and interest rate?
You will receive a confirmation letter and a Margin Financing Facility Letter after application progress completed. The Facility letter will list all detail information of credit limit, terms and conditions and interest rate. And please sign the copy of the facility letter and return to us.

4. Must I sign and return the copy of Margin Financing Facility Letter?
We are pleased for you to return the signed Facility Letter. However, even not returning the signed letter, you are assumed acceptance with all terms and conditions on the facility letter once the credit limit has been used. In additional, our credit department will frequently review and adjust your margin limit.

5. When will I need to pay interests?
Interest will be charged on your overdue negative balance after settlement date. For more information, please check with your facility letter.

6. What is margin call?
Since the collateral stocks value are floating with the market price. Once the margin value level is below the account outstanding, then you will be requested to deposit additional cash or collateral stocks to settle the insufficient differences.

7. What will happen if I do not deposit additional cash or collateral after margin call?
If you do not deposit additional cash or collateral within the limited period, then we may liquidate your collateral to cover the margin deficit.