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Investment Products
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Monday to Friday 8:30AM - 5:30PM Saturday, Sunday & Public Holidays Closed |
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Hotline: (852)3198-0622 |
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Margin Financing
| Margin Securities Accounts |
Margin securities are securities that investors buy with borrowed funds from the brokerage firm. Customers must first deposit a certain amount of funds into their margin account before purchasing stocks worth more than the principal fund available in their account. |
| The trade amount difference will be financed by Oshidori Securities who will hold custody of the securities as collateral. Due to fluctuations in securities pricing, Enerchine Securities reserves the right to request customers to deposit additional funds or securities if the customer's margin position fall below the required maintenance level. |
| Calculation: |
| Margin Value of a Specific Stock = Number of Shares Held x Closing Price of the Previous Trade Day x Lending Ratio |
| Margin Securities Account - Authorization Letter |
| Customers who open margin securities account are required to sign an Authorization Letter, which shall authorize Oshidori Securities Limited to use the securities purchased or deposited by customers as collateral (under Sections 8 and 8A of the Securities and Futures Ordinance Chapter 571H ). The Authorization Letter is valid for a period of 12 months, subject to renewal for further provision of margin facilities to the customer. |
| Margin Securities Account - Associated Risk |
| Margin accounts allow room for leveraging so customers may receive a higher return rate together with a higher associated risk on buying and selling securities. Hence, margin securities accounts are only applicable to customers with extensive investment experience or are adverse to risk. |
| The associated risks of margin trading would be further explained during the course of account-opening procedure. |