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Electronic trading system, provides HK Futures, Index Options & Global Futures trading service.
 


Online trading system, provides HK Stocks, US Stocks, Taiwan Stocks, China B-shares & Mutual Fund trading service.    Trading Demo
 


Mobile trading system, provides
HK Stock trading service.
 
   


Electronic trading system, provides HK Stock Option trading service.
 


Electronic trading system, provides HK Stock trading service and streaming quotes.
 


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Do I need to deposit funds into my KGI Trading Account before giving a trading order?

This depends upon two factors:

  • your Purchasing Power (PP) at KGI; and
  • the risk class of the stock you wish to buy

For most Hong Kong Stocks, the purchase does not require pre-funding depending on the then prevailing PP of your account and the margin ratio1of the stock being purchased. That means: if the current PP of your Trading Account is HKD 20,000 and the margin ratio of the Hong Kong Stock being purchased is 60%, you can purchase up to HKD 50,000 worth of the stocks without depositing funds beforehand. The Margin Table for Hong Kong Stocks can be found under "WebTrade""Securities Trading" "Margin Table", after you log in to the WebTrade. You can also call our 24-hour InvestLine at (852) 2878-5555 or contact your Investment Representative to know more about the Margin Table.

If these shares are non-marginable2 Hong Kong Stocks and ALL foreign stocks, the maximum amount of these stocks you can buy without depositing additional funds before placing an order is the current PP.

However, if you are on margin call, you will need to satisfy the margin requirement before fund withdrawal of any further purchases can be put through.

1Up to 80% certain Hong Kong Stocks.
2 CBBCs, Warrants, rights and other securities considered non-marginable by KGI.

Note:
In general, KGI does not offer margin financing for non-Hong Kong Stocks. This means that holding these stocks will not add to your Purchasing Power (PP). However, your PP can be enhanced by buying most of Hong Kong Stocks.

What is Purchasing Power (PP)?

PP indicates the total value of securities, depending on their risk class, that you can immediately purchase. The figure is based upon your ledger balance and the total marginable value of the stock portfolio in your KGI Trading Account.

For margin clients, the marginable value of a stock represents the amount for borrowing that can be obtained from the stock holding. For cash clients, the marginable value is the amount by which your immediate PP can be enhanced, but full settlement of the transaction amount is still required on the settlement date of the relevant trade.

Example: If your PP is HKD 100,000 in cash or your margin account, you can purchase without pre-funding up to about (approximations only):

  • HKD330,000 of Hong Kong Stocks with margin ratio 70%, or
  • HKD140,000 of Hong Kong Stocks with margin ratio 30%, or
  • HKD100,000 of Warrants/non-marginable stocks

The above example demonstrates that you don't need to have the sufficient cash in your Trading Account before placing a buy order. However, you still need to fully settle the transaction amount on the settlement date (for cash accounts) or to fulfill the margin call that maybe arises subsequent to the transaction (for cash and margin accounts).

The Margin Table for Hong Kong stocks can be found under "WebTrade" "Securities Trading" "Margin Table", after you log in to the WebTrade. You can also call our 24-hour InvestLine at (852) 2878-5555 or contact your Investment Representative to know more about the Margin Table.

What is "Cash PP"?

"Cash PP" indicates the total value of securities that you can purchase "Non-eligible Securities for Margin Trading" at this moment. The figure is based on your ledger balance in your KGI Trading Account.

No matter for margin clients or cash clients, full settlement of the transaction amount is required on the settlement date of the relevant trade.

Example: If your Cash PP is HKD 100,000, you can purchase up to about (approximations only):

  • HKD 100,000 non-marginable stocks.

The above example demonstrates that you need to have sufficient cash in your Trading Account before placing a buy order. Also, you must fully settle the transaction amount of the relevant trades on settlement date (for cash and margin accounts).

The Margin Table for Hong Kong stocks can be found under "WebTrade" "Securities Trading" "Margin Table", after you log in to the WebTrade. You can also call our 24-hour InvestLine at (852) 2878-5555 or contact your Investment Representative to know more about the Margin Table.

Ref from KGI website: What is Purchasing Power (PP)?

When does my Purchasing Power (PP) get updated once I make a HKD/USD deposit into my KGI Trading Account?

Non-cheque deposits:

With inter-bank transfer, cash deposit, HSBC/ Hang Seng Bank/ Standard Chartered Bank phone banking and electronic banking services via a Hong Kong source, your Purchasing Power will be updated within 2 hours1 for normal bank's service hours.

With PPS Services and Online Bank Bill Payment Services (exclude HSBC, Hang Seng and Wing Lung Bank), if you make successful depositing before the cut-off time, your Purchasing Power will be updated on the next business day.

Cheque deposits:

With cheque depositing, if your deposit is up to a maximum of HKD 50,0002, will be updated in your Purchasing Power within 2 hours1 for normal banks' service hours. And if your deposit exceeds this amount, the full amount will also be shown in your Purchasing Power once the cheque is cleared.

1Within 2 hours on receipt of notification by KGI, excluding Saturdays, Sundays and Public Holidays (HKT).
2Regardless of the number of deposits made on a single day.

Refer to: How do I deposit HKD/USD into my KGI Trading Account?

Can I trade stocks on margin financing?

You can trade stocks on margin financing if you have a margin account. The Margin Table for Hong Kong Stocks can be found under "WebTrade""Securities Trading" "Margin Table", after you log in to the WebTrade. You can also call our 24-hour InvestLine at (852) 2878-5555 or contact your Investment Representative to know more about the Margin Table.

In general, KGI does not offer margin financing for non-Hong Kong Stocks. This means that holding these stocks will not increase your Purchasing Power (PP). However, your PP can be increased by buying most of Hong Kong Stocks. Reference FX rates are available to help you to determine your PP amount.

Refer to: What is Purchasing Power (PP)?

Refer to: What types of account can I open with KGI?

What is a credit limit?

Credit limit is applicable to a margin account and it determines the total maximum amount on a value day basis that may remain outstanding under the account.

What is a margin call?

The different definitions of the margin call are applicable to different types of accounts as follows:

Cash Accounts

A margin call will be issued when there is overdue payment that remains outstanding after the settlement date, or at any time or from time to time as required by KGI.

Margin Accounts

A margin call will be issued when the marginable value of the account's portfolio is not enough to cover the total amount outstanding under the account or when the amount on a value day basis that remains outstanding under the account is greater than the approved credit limit or otherwise at any time or from time to time as required by KGI. Thus, the margin call amount will be the greater of the amount in excess of the marginable value of the account's portfolio or the approved credit limit or the amount demanded by KGI.

Once you are on margin call, you will not be able to buy any more stocks and withdraw securities or cash, and you will have to pay up the margin call amount immediately by cash depositing, depositing of additional securities collateral and/ or liquidating an appropriate amount of your portfolio (as applicable). If you fail to satisfy the call, your portfolio can be partially or totally liquidated without any prior notice.

Note: KGI reserves the right to change its credit limit, margin and forced liquidation policies either generally or in any particular case without any prior notice.

Futures & Options

Do I need to deposit funds into my KGI Trading Account before giving a trading order?

In the futures and options markets, both buyers and sellers need to deposit an initial margin, which usually an amount to be used to cover daily market price fluctuations. At the end of each trading day, investors' accounts will be adjusted according to the value of each contract or marked to market. If the initial margin deposit falls below the maintenance margin, after marking-to-market, a margin call will be issued and investors must deposit additional funds in corresponding currency or eligible collateral to restore the account to the initial margin level.

If you instruct KGI to enter into a futures or options transaction effected in a foreign currency, (i) any profit or loss resulting from the exchange rate fluctuations of such foreign currency will be at your own risk; and (ii) all deposits for margin purposes shall be made in cash in the foreign currency unless KGI requires others otherwise. KGI reserves the right to convert from funds in your account to money in foreign currency at the rate of exchange determined by KGI in its sole discretion on the basis of the then prevailing money market rates for handling such transactions and/or exercising KGI's rights. Any all cost to currency conversion should be borne by you.

Where can I check the margin requirements?

The margin requirements table for HK Futures and Global Futures can be found from the [Commission, Charges & Margin Table] section on our website.

HK Futures : Futures and OptionsCommission, Charges & MarginHK Futures and Options

Global Futures : Futures and OptionsCommission, Charges & MarginGlobal Futures and Options

When does my Buying Power get updated once I make a HKD/USD deposit into my KGI Trading Account?

Non-cheque deposits:

With inter-bank transfer, cash deposit, HSBC/ Hang Seng Bank/ Standard Chartered Bank phone banking and electronic banking services via a Hong Kong source, your Buying Power will be updated within 2 hours1 for normal banks' service hours.

With PPS Services and Online Bank Bill Payment Services (exclude HSBC, Hang Seng and Wing Lung Bank), if you make successful depositing before the cut-off time, your Buying Power will be updated on the next business day.

Cheque deposits:

With cheque depositing, if your deposit is up to a maximum of HKD 50,0002, your Purchasing Power will be updated in your Buying Power within 2 hours1 for normal banks' service hours. And if your deposit exceeds this amount, the full amount will also be shown in your Buying Power once the cheque is cleared.

1Within 2 hours on receipt of notification by KGI, excluding Saturdays, Sundays and Public Holidays (HKT).
2Regardless of the number of deposits made on a single day.

Refer to: How do I deposit HKD/USD into my KGI Trading Account?

What is a margin call?

A margin call will be issued when the account value in the market is lower than the maintenance margin requirement of all futures and options positions.

Once you are on margin call, you will not be able to open new positions and you will have to pay up the margin call amount immediately by cash depositing, eligible collateral for stock options and/ or closing out an appropriate number of existing positions. If you fail to satisfy the call, your positions will be partially or totally liquidated immediately without any further notice.

Once you settle the margin call, please inform our Customer Service Officers by calling our 24-hour InvestLine at (852) 2878-5555 or contact your Investment Representative.

Note: KGI reserves the right to change its margin call and forced liquidation policy either generally or in any particular case without prior notice.