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 FX Margin Trading Services
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FX Margin Trading Services
Waivers of commission and charge Various currencies and cross-currency combinations are available for your buying or selling. Cash margin can be made in various currencies. Enjoy interest earned from your cash margin. Fixed deposits at the Bank can be pledged as collateral to apply for a credit line in lieu of a cash margin. A wide range of conditional orders and tenure. For the former one, the valid period can be as long as 2 weeks. Position squaring service is available. Free hotline services for enquiring about forex rates.
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Trading Detail |
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Trading Hour and Channel |
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Trading Examples |
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Calculation of Interest |
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Trading Detail
| Trading Currencies/BullionsΔ |
Lot Size |
Standard Cash Margin requirement |
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AUD/USD |
AUD 50,000 |
5% *
(based on the market value of FX contract amount, or other currencies in equivalent amounts) |
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USD/CAD |
CAD 50,000 |
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USD/CHF |
CHF 50,000 |
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USD/HKD |
HKD 250,000 |
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EUR/USD |
EUR 25,000 |
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GBP/USD |
GBP 25,000 |
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USD/JPY |
JPY 5,000,000 |
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NZD/USD |
NZD 50,000 |
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AUD/JPY |
AUD 50,000 |
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EUR/CHF |
EUR 25,000 |
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EUR/GBP |
EUR 25,000 |
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EUR/JPY |
EUR 25,000 |
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GBP/CHF |
GBP 50,000 |
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GBP/JPY |
GBP 50,000 |
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NZD/JPY |
NZD 50,000 |
Δ The Trading Currency/ Precious Metal as listed above are for reference only.
* Standard cash margin requirements are subject to adjustment by Nanyang Commercial Bank, Limited when the bank deems such action necessary.
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Trading Hour and Channel
Manned investment trading hotline - Monday to Friday (5:00am - 4:00am, next day). Internet Banking - Monday to Friday (5:00am - 4:00am, next day).
* Trading hour will be announced separately when Hong Kong and other major financial markets are closed.
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Trading Examples
Example 1: Square the position on the same day
If you have a bearish view on JPY and sell short JPY10,000,000 (2 lots), you have simultaneously bought USD81,632.65 (Assumption: Exchange rate of selling JPY/USD is 122.50, the calculation of this transaction is 10,000,000 ÷ 122.50). The cash margin required in your Bullion/FX Margin Trading account is USD4,081.63 (81,632.65 × 5%) or other currencies in equivalent amounts. If you square your position on the same day and buy JPY10,000,000, then you have simultaneously sold USD80,000 (Assumption: Exchange rate of buying JPY/USD is 125, the calculation of this transaction is 10,000,000 ÷ 125).
Profit of the above transactions:
USD (81,632.65 - 80,000)
= USD1,632.65
Example 2: Not square the position on the same day
If you buy GBP75,000 (3 lots) on Wednesday, you have simultaneously sold USD107,250 (Assumption: Exchange rate of buying GBP/USD is 1.43, the calculation of this transaction is 75,000 × 1.43). The cash margin required in your Bullion/FX Margin Trading account is USD5,362.50 (107,250 × 5%). The value/delivery date is on Friday. You square your position and sell GBP75,000 until Thursday, you have simultaneously bought USD109,875 (Assumption: Exchange rate of selling GBP/USD is 1.4650, the calculation of this transaction is 75,000 × 1.4650). The value/delivery date is next Monday. Suppose the interest rate earned from buying GBP is 4% and the interest rate charged from selling USD is 5%. The interest will be calculated from Friday to next Monday (total of 3 days).
Profit of the above transactions:
(- USD107,250 + USD109,875) + (GBP75,000 × 4% ÷ 365) × 3 - (USD107,250 × 5% ÷ 360) × 3
= USD2,625 + GBP24.66 - USD44.70
= USD(2,625 + 36.05 - 44.70)
= USD2,616.35
(Assuming: GBP24.66 is exchanged to USD36.05 at rate of GBP/USD 1.4620.)
Example 3: Square the position of prevailing exchange rate on the same day
If you have a bullish view on EUR and a bearish view on JPY, you buy one lot of EUR/JPY (one lot of EUR/JPY is equal to EUR25,000). Simultaneously, you have sold JPY2,895,000 (Assumption: Prevailing exchange rate of EUR/JPY is 115.80, the calculation of this transaction is 25,000 × 115.80) The cash margin required in your Bullion/FX Margin Trading account is USD1,175 (Assumption: Prevailing exchange rate of EUR/USD is 0.94, the calculation of cash margin is 25,000 × 0.94 × 5%.) You square your position on the same day and sell one lot of EUR/JPY.
Profit of the above transactions:
JPY(116.20 - 115.80) × 25,000
= JPY10,000
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Calculation of Interest
Interest will be accrued to margins as soon as they are deposited in the FX Margin Trading (USD) account. For transactions involving long/short positions for traded currencies, interest will accrue from the date of delivery specified in the daily transaction statement. For transactions involving HKD and GBP, interest will be calculated on the basis of 365 days per year. For other currencies, interest will be calculated on the basis of 360 days per year. Interest accrued in the FX Margin Trading (USD) account will be paid on the day before last business day of each month. Any interest accrued from foreign currency margins or contracts will be converted into USD, calculated on the basis of either that day's closing rate or the exchange rate determined by the Bank. Such interest will then be credited to or debited from the margin balance accordingly.
For further information, please visit any of our branches or call our enquiry hotline at (852) 2622 2633
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Important Notice
Risk Disclosure
The following risk disclosure statements cannot disclose all the risks involved. You should undertake your own research and study before you trade or invest. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives. You are advised to seek independent financial and professional advice before you trade or invest. You should seek independent professional advice if you are uncertain of or have not understood any aspect of the following risk disclosure statements or the nature and risks involved in trading or investment.
Risk Disclosure in respect of Precious Metal/ FX Margin Trading
The risk of loss in leveraged foreign exchange trading and precious metals trading can be substantial. You may sustain losses in excess of your initial cash margin. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional cash margin. If the required cash margin or interest payments are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account and interest charged on your account. A demand for additional cash margin is not a precondition to, and does not in any way limit, our right to liquidate your open positions according to the relevant terms and conditions. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives.
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