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 Margin FX & Precious Metal Trading account to capture investment opportunity.
We are able to provide comprehensive FX products for sophisticated customers:
You can trade different currencies and any two of their combinations as Cross Rate trade., including USD, JPY, EUR, GBP, CAD, AUD, NZD, CHF, CNH and HKD.
You can trade various precious metal spot trading in 24 hours*, including London Gold (XAU) and Silver (XAG). Option trading will be provided to professional investor.
* No physical delivery is provided.
You can trade various margin products through our Personal Internet Banking and Personal Mobile Banking. There is no minimum transaction amount in Spot trading with preferential spread. Placement of various types of order, price alert, Request for Quote (RFQ), and analysis tools services are all available.
Apart from online trading platforms, you can call our trading hotline at anytime to trade various products and professional services. Product specialist will help you in trading and market information, especially on advanced products.
All condition orders can be served as “good til cancel” (GTC), “good til week end”, “good til day end”, or “specific time”.
* 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).
User Guide Margin FX and Precious Metal Trading
Margin Spot Trading Product Factsheet
Margin Derivative Trading Product Factsheet
To borrow or not to borrow ? Borrow only if you can repay !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. To the extent permitted under applicable laws and regulations, 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 third parties. ICBC (Asia), or any connected company, may have a position in any of the instruments or currencies mentioned in this document. Deposit protection. Deposit in the Margin FX & Precious Metal 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. However, a transaction executed under Margin FX & Precious Metal trading account is a transaction in an investment product and is not a protected deposit and hence is not protected by the Deposit Protection Scheme in Hong Kong.
The following is a summary of some of the risks involved in Margin FX & Precious Metal Trading. It is NOT an exhaustive list, and you are recommended to obtain independent professional advice before entering into these trades. Margin FX & Precious Metal trading is not a principal protected product. You should carefully consider whether such trading is suitable for you in light of your financial condition, experience and investment objectives. Market loss.
If the market situation is different from your expectation, you may face substantial or unlimited loss. The risk of loss in leveraged 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 transactions 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 large losses as well as gains.
Risk relating to CNH
If the denomination currency of a margin transaction is CNH, you should note that the value of CNH 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 CNH and foreign currencies both in Hong Kong and the PRC), which may adversely affect your investments.
Unless the context requires otherwise, we will neither provide any recommendation to you in respect of nor advise you on the merits of any transaction. Before entering into any margin trade, you should decide for yourself whether such trade meets your investment needs, perform your own due diligence on investments and/or seek independent legal, financial and other professional advice prior to any investment decisions. You may suffer substantial losses under margin trades.
Volatility of FX prices
Buying or selling price of currencies for FX Margin Trading is quoted by us and calculated with reference to the prevailing market exchange rates and our profit margins. The prevailing market price of currency can be very volatile due to a variety of unpredictable factors. Prices fluctuate freely in accordance with supply and demand within relevant markets and respond quickly to political and economic applications.
Not in physical form of precious metal
Margin Precious Metal Trading does NOT involve any physical delivery of precious metals. You do not have any rights, ownership and possession of any physical precious metals. Allocation of precious metals in your Margin FX & Precious Metal 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 prices of the relevant precious metals.
Volatility of precious metal prices
Buying or selling prices of precious metals for Margin Precious Metal Trading are quoted by us and calculated with reference to the prevailing market prices of precious metals (if applicable, prices are subject to the prevailing exchange rate and our profit margins). The prevailing market price of precious metals can be very volatile due to a variety of unpredictable factors. Precious metals are physical commodities which are limited in supply. Commodity markets are generally subject to greater risks than other markets, including potentially significant legal risks. Precious metals are vital industrial commodities. The price of precious metals may be highly volatile. Prices fluctuate freely in accordance with supply and demand of the relevant markets and respond quickly to political and economic applications. Price movements of precious metals are influenced by, among other things, interest rates, exchange rates, inflation, changing market supply and demand dynamics, fiscal / monetary programs, exchange control programs, government policies, international political events, military events, and economic events/policies. Precious metals are often extracted by less developed countries. 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 metals, which could have a negative impact on prices and/or value of the precious metals.
Exchange rate risk
You should note that trades are executed at the prices quoted in the currency you have selected, but settlement of such trades must be made in USD. If your trade requires currency conversion, you will be exposed to fluctuations in exchange rate between the currency selected and USD. Any transaction involving foreign currencies, include FX margin 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.
Investment involves risks and the prevailing market prices of FX/precious metals may fluctuate. The value of your positions in your Margin FX & Precious Metal trading may go up or down, sometimes dramatically, and may even become valueless. In the worst-case scenario, you may suffer substantial or even unlimited loss.
Credit risk of the BankICBC (Asia), which is subject to the prudential regulation of the Hong Kong Monetary Authority, is your counterparty in the margin trades. There is no assurance of protection against a default by the Bank with respect to its payment obligations. If you enter into the margin trades, you 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 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 prices and the terms of the services.
Fees of Risk Warnings & Disclaimers
The Bank’s profit for the product will be reflected in the pricing of the product. The Bank will benefit from the issuance and distribution of the product but no other monetary benefit is received by the Bank.
Early termination risk by us
We may terminate your account upon notice if an event of default occurs on your part. In such a scenario, all outstanding positions will be closed out at prices determined by us in our good faith based on the prevailing circumstances, you may suffer substantial or even unlimited loss.
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/precious metals, with our respective hedging counterparties in the market. If the size of hedging transactions is substantial, it is possible that these activities could adversely affect the prevailing market price of FX/precious metals. As such, FX/precious metal buying or selling prices for Margin FX trading which are calculated with reference to the prevailing market price of FX/precious metals will be affected as well. The value of your positions in your Margin FX & Precious Metal trading account may fluctuate.
Set-off and lien
We have the right to combine or consolidate any standing balances to the credit of your Margin FX & Precious Metal 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 Margin FX & Precious Metal Trading. Our economic interests in each role may be adverse to your interest in margin trading.
Force majeure events
We are not liable for any failure or delay in meeting our 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/ installation or other causes which result or is likely to result in the erratic behavior of FX/precious metal prices, the closure of the markets or exchanges of FX/precious metal or any other cause affecting the operation of your Margin FX & Precious Metal account.
You should read and understand the terms and conditions for margin trading services and the information available for such services before you enter into any margin FX transactions and margin precious metal transactions.