Increased buying power
Increase your exposure and potential profits, with up to 3.3x leverage on individual stocks and ETFs.
Simple loan facility
Use cash or securities on your account as collateral for a margin loan.
Pay just HKD 40 to trade HK stocks – the same rates you receive on our standard trading account.
- A margin lending account enables you to put down cash or securities as collateral for a loan, which you can use to leverage your positions.
By taking a margin loan, you can increase your buying power in stocks and ETFs, beyond the value of the cash and/or securities on your account. It’s an attractive option if you’re actively trading, or an investor expecting to generate long-term returns.
The margin loan works as a ‘credit facility’, and the amount you can borrow depends on your financial situation and the collateral value of the assets on your account.
Please view the factsheet for more details about margin lending.
Trade with up to 3.3x leverage
Increase your buying power in stocks and ETFs listed on the Hong Kong Stock Exchange and US exchanges.
You can trade with up to 3.3x leverage, depending on the stocks or ETFs you choose to trade. Each stock and ETF has a risk rating of 1 to 6, with a specific collateral value attached to each rating group. A rating 1 stock, for example, has a collateral value of 70%.
|Stock’s and ETF’s risk rating||1||2||3||4||5||6|
|Collateral value haircut (equivalent to margin requirement)||30%||30%||30%||30%||50%||100%|
- Position in risk rating 1 stock
OWN FUNDS 30%
- Please note that if you only hold cash on your margin lending account, there is no collateral value haircut. The collateral value is equal to the full cash amount.
You can find the risk rating of each stock and ETF and its collateral value under ‘Trading Conditions’ on the platform.
Trading on a margin lending account
Once you’ve created and funded your margin lending account, placing a trade is easy. Please note that you will receive multiple sub-accounts in different currencies.
Simple order placement
In the trade ticket, simply select ‘margin lending’ account before placing your order. You can see the impact of the trade on your collateral utilisation at the bottom of the ticket.
Essential trade information
Under ‘Trading Conditions’, you can find key information about the stock or ETF you want to trade, including its risk rating, collateral value and maximum collateral amount.
Detailed account overview
In the ‘Account Details’ section, you can see information about your margin lending account, including your loan and collateral utilisation.
Frequently asked questions
You’ll need to provide a bit of information regarding your financial situation for us to process your application. Once we have received your request, we will evaluate the information provided and create a Margin Lending account as a sub-account to your standard account.
The interest rate you pay on the loan is comprised of two components: the benchmark rate (relevant one-month interbank rate) plus a fixed mark-up. The interest rate is dependent on the currency of the sub-account, ie the interest rate on HKD and USD accounts will be different.
Please note that the daily interest is calculated based on the net cash balance on each sub-account (in different currencies). You can see the associated trading costs for individual instruments under ‘Trading Conditions’ on the platform.
Imagine you deposited USD 10,000 on your Margin Lending account and plan to buy 1,000 shares in the US listed Stock ABC, priced at USD 25/share.
Stock ABC has a risk rating 1, with an initial collateral value of 63% and maintenance collateral value of 70% (haircut = 30%). This means you’ll need to put up 37% of the transaction value as collateral (cash or positions) to open the position. This will give you an effective leverage of up to 2.70x your capital at the time of opening.
After the trade, your net cash balance will change from USD 10,000 to minus USD 15,000, since you have now borrowed USD 15,000 to finance the position value of USD 25,000.
After the trade you will have utilised 86% of your account’s maintenance collateral value. That means you’ll have USD 750 left as unused initial collateral to open new positions worth up to USD 2,027 (assuming a risk rating 1 stock with 63% initial collateral value).
|Pre Trade||Post Trade|
|Position details - Stock ABC||Position details - Stock ABC|
|# shares||-||# shares||1,000.00|
|Share Price||-||Share Price (USD)||25.00|
|Market Value||-||Market Value (USD)||25,000.00|
|Risk Rating||-||Risk Rating||1.00|
|Initial Collateral Value (%)||-||Initial Collateral Value (%)||63%|
|Maintenance Collateral Value (%)||-||Maintenance Collateral Value (%)||70%|
|Haircut (Maintenance Margin Req., %)||-||Haircut (Maintenance Margin Req., %)||30%|
|Position details - Stock ABC|
|Initial Collateral Value (%)||-|
|Maintenance Collateral Value (%)||-|
|Haircut (Maintenance Margin Req., %)||-|
|Position details - Stock ABC|
|Share Price (USD)||25.00|
|Market Value (USD)||25,000.00|
|Initial Collateral Value (%)||63%|
|Maintenance Collateral Value (%)||70%|
|Haircut (Maintenance Margin Req., %)||30%|
Please note that the above example does not take transactional costs (commissions etc) and financing costs (interest) when holding the position overnight into account.