ICBC(Asia)-Personal > Investments > FX and Spot Gold Margin Trading Services
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Helps You to Grasp Every Investment Opportunities in both
FX and Precious Metal Markets

ICBC (Asia) is proud to offer comprehensive Margin Trading Services to sophisticated investors. With a deposit of only 5% (FX) or 7% (Precious Metal) of the contract amount, investors may invest in various Margin products in single account to capture investment opportunity.

 

Margin FX Trading Services

We provide comprehensive FX products for sophisticated customers :

  • Spot FX
  • Currency Forward
  • Currency Options
  • Non-delivery Forward and Options

You can trade any 2 of 10 currencies, including USD, EUR, GBP, CHF, JPY, AUD, NZD, CAD, HKD and CNH*.

*CNH is offshore Chinese Yuan, which is offered to non-HK residents and corporate customers exclusively

 

Margin Precious Metal Trading Services

You can trade various precious metal spot trading in 24 hours*, including London Gold (XAU), Silver (XAG), Platinum (XPT) and Palladium (XPD) against USD or other major currencies, such as XAU/JPY.

* No physical delivery is provided.

Various Types of Condition Order

  • Limit Order
  • Stop Loss/Profit Order
  • If Done Order
  • One Cancel Other Order
  • If Done One Cancel Other Order

All condition order can be served as good til cancel (GTC), good til week end, good til day end, or specific time.

Strengths

  • 24 hours trading services*
  • Wide range product choices
  • Preferential trading spread
  • Flexible solution
  • Comprehensive trading means
  • Multi-currency time deposit pledge
  • One account for trading all products

* From 8:00 a.m. on Monday to 5:00 a.m. on Saturday (Eastern U.S. Summer Time) or 6:00 a.m. on Saturday (Eastern U.S. Winter Time).

 

Specialist Hotline

You can call our trading service hotline at anytime to trade various products with flexible solution and professional services. Product specialist will help you in trading and market information, especially on advanced products.

 

How to find out more

 

Risk Warnings and Disclaimers

This document is for information purposes only and does not constitute any recommendation or solicitation to any person to enter into any transaction or adopt any trading strategy nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such movements will not exceed those shown in any illustration. You will not rely on any information, proposal or other communication, including market research and commentary, from us with respect to any instructions you may give us. We do not warrant, represent or guarantee the accuracy, truth, reliability, adequacy, timeliness or completeness of any commentaries, financial information or data or whether it is fit for any purpose, nor do we assume any liability for any reliance on any commentaries, information or data by you or any other person. ICBC (Asia), or any connected company, may have a position in any of the instruments or currencies mentioned in this document.

Deposit Protection Scheme

Deposit in the margin trading account is a deposit qualified for protection by the Deposit Protection Scheme in Hong Kong. ICBC (Asia) is a member of the Deposit Protection Scheme in Hong Kong. Eligible deposits taken by us are protected by the Scheme up to a statutory limit (currently set as HK$500,000) per depositor.

 

The following is a summary of some of the risks involving the FX/Margin Precious Metal trading. It is NOT an exhaustive list, and you are recommended to obtain independent professional advice before entering into these trades. You should carefully consider whether such trading is suitable for you in light of your financial condition, experience and investment objectives.

 

Risk of Margin FX and Precious Metal Trading

If the market situation is different from your expectation, you may face substantial or unlimited loss. The risk of loss in leveraged FX trading can be substantial or unlimited. You may sustain losses in excess of your cash and any other assets deposited as collateral. Placing contingent orders, such as “stop-loss” or “stop-limit” order, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders at the designated price.  If the market moves against your positions, you may be called upon at short notice to deposit additional margin funds (which may be substantial) in order to maintain your positions. If the required collateral or interest payments are not provided within the prescribed time, your position may be liquidated without your consent. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. A demand for additional deposit 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. You should not participate in margin trading unless you understand and are willing to assume the risks associated with such transaction and are financially able to absorb losses in excess of the collateral you deposit with us. The high degree of leverage which is often obtained in connection with margin trades can work against you as well as for you. The use of leverage can lead to a large losses as well as gains.

 

Product Suitability

We will neither provide any recommendation to you in respect of nor any advice on the merits of any transaction. Before entering into any margin precious metal trade, you should decide for yourself whether such trade meets your investment needs, perform your own due diligence on investments or seek independent legal, financial and other professional advice prior to any investment decisions. You may suffer substantial losses under margin precious metal trades.

Not a Physical Precious Metal Product

Margin precious metal trading does NOT involve any physical delivery of precious metal. You do not have any rights, ownership and possession of any physical precious metal. The allocation of precious metal in your margin trading account is notional and for the sole purpose of determining the cash value of the account. The investment return is calculated with reference to the prevailing market price of precious metal.

Volatility of FX and Precious Metal Price

FX/Precious metal buying or selling price for margin FX / precious metal trading is quoted by us and calculated by reference to the prevailing market price of FX / precious metal (and is subject to the prevailing exchange rate (if applicable) and our profit margins). The prevailing market price of FX / precious metal can be very volatile due to a variety of factors that are unpredictable.

Precious metal is a physical commodity and is limited in supply. Commodity markets are generally subject to greater risks than other markets, including potentially significant legal risks. Precious metal is a vital industrial commodity. The price of precious metal may be highly volatile. The price floats freely in accordance with the supply and demand of the relevant market. It responds quickly to political and economic applications and is determined in the open market. Price movements of precious metal are influenced by, among other thing, interest rates, exchange rates, inflation, changing market supply and demand relationships, fiscal, monetary and exchange control programmes and policies of governments, as well as international political, military and economic events and policies. Precious metal is often extracted by the emerging market countries. Far-reaching political changes may result in constitutional and social tensions, and in some cases these may result in instability and dissent. Political or economic instability may affect investor confidence in precious metal, which could in turn have a negative impact on the price or value of precious metal

 

Derivatives

The option and forward trading are structured products involving derivatives. The investment decision is yours but you should not invest in the Structured Products unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.  The loss of option trading can be substantial and unlimited but the gain maybe limited to option premium in some cases. Customer must understand and able to bear the risk involved before investing in the product.

 

Exchange Rate Risk

You should note that the trades are executed at the prices quoted in the currency selected by you but the settlement of such trades is made in USD. If your trade is not executed at the price quoted in USD, you will be exposed to fluctuations in the prevailing exchange rate between the currency selected by you and USD when your trade is settled. Any transaction involving foreign currencies, include margin precious metal trades, involves additional risks not common to transactions denominated entirely in your domestic currency. Foreign exchange rates can be highly volatile and can be affected by factors such as changes in political and economic policy (both domestic and overseas), political instability, wars, natural disasters and global market movements.

Risk Relating to RMB

If the denomination currency of Margin Precious Metal transaction is RMB, you should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government’s control (for example, the PRC government regulates conversion between CNY and foreign currencies both in Hong Kong and the PRC), which may adversely affect your investments under this Margin Precious Metal Trading. You should also note that RMB is currently not freely convertible and conversion of RMB through banks in Hong Kong is subject to certain restrictions. In particular, the conversion of RMB by a Hong Kong resident or the conversion of RMB cashnotes by non-Hong Kong Residents is subject to a daily conversion limit. If you are intend to convert an amount of RMB from/to another currency exceeding such daily conversion limit, you should allow sufficient period to enable the conversion of the amount of RMB exceeding such daily conversion limit, taking into account the maximum amount of RMB that permitted to convert on each day.

Investment Risk

Investment involves risks and the prevailing market price of precious metal may fluctuate. The value of your positions in your margin trading account may move up or down, sometimes dramatically, and may even become valueless. In the worst case scenario, your loss may be substantial or even unlimited.

Credit Risk of the Bank

Industrial and Commercial Bank of China (Asia) Limited (the “Bank”, “ICBC (Asia)”, “we” or “us”), which is subject to the prudential regulation of the Hong Kong Monetary Authority, is your counterparty in the margin precious metal trades. There is no assurance of protection against a default by the Bank in respect of its payment obligations. If you enter into the margin precious metal trades, you are rely upon the creditworthiness of the Bank and of no other person. If the Bank becomes insolvent or defaults on its obligations under the margin precious metal trades, you can only claim as the Bank’s unsecured creditor. In the worst case scenario, you may lose your entire investment irrespective of the performance of the precious metal price and the terms of the margin precious metal trading services.

Early Termination Risk by Us

We may terminate your account upon notice if an event of default on your part occurs. In such scenario, all outstanding positions will be closed out at such price as determined by us in our good faith based on the prevailing circumstances, and you may suffer a loss which may be substantial or unlimited.

Risk Relating to Our Hedging Activities

We may enter into hedging transactions, which typically involve the establishment of long and/or short positions in FX, with our respective hedging counterparties in the market. It is possible that these activities could adversely affect the prevailing market price of FX if the size of hedging transaction is substantial. As such FX buying or selling price for margin FX trading calculated with reference to the prevailing market price of FX will be affected as well. The value of your positions in your margin trading account may move up and down.

Set-off and Lien

We have the right to combine or consolidate any balances standing to the credit of your margin trading account to set-off against any indebtedness owed by you to us.

Conflicts of Interest

Potential and actual conflicts of interest may arise from the different roles played by us and our subsidiaries and affiliates in connection with the margin FX trading, and our economic interests in each role may be adverse to your interest in the margin FX trading.

Force Majeure Events

We are not liable for any failure or delay to meet its obligations due to any causes beyond our control which shall include local or international happenings such as Acts of God, Government act, flood, fire, civil commotion, strike, war or any other causes beyond the reasonable control of us, mechanical failure, power failure, malfunction, breakdown, interruption or inadequacy of equipment or installation or other cause which results or is likely to result in the erratic behavior of FX prices, the closure of the markets or exchanges of FX or any other cause affecting the operation of your margin trading account.

This document has not been reviewed by Securities and Futures Commission.

You should read and understand the terms and conditions for margin trading services and the information available for such services, including the factsheet of margin FX / Precious Metal Trading that is issued by us from time to time for further descriptions about margin FX / Precious Metal Trading and the risks involved, before you trade in any FX / Precious Metal Trading

 


 

 


 

 

 

 

 
 

 


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