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Foreign Exchange Margin and Option Trading Facility
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Choose Your Own Path, Leverage Your Investment
BEA's Foreign Exchange Margin and Option Trading Facility ("FX-MOPT") provides you with enhanced flexibility in the management of your investment portfolio in the volatile foreign exchange market. |
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| Upon opening an FX-MOPT account, you can enjoy Foreign Exchange Margin Trading Facility ("FX-MT") to select from a wide range of currencies and contract periods and / or Foreign Exchange Option Trading Facility ("FX-OPT") to hedge against any adverse movement in foreign exchange rates. |
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FX-MT |
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Leveraged trading: 12.5 times or 16.6 times the value of your margin deposit. |
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Minimum trading amount: USD250,000 or its equivalent. |
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Extended trading hours: |
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Monday to Friday
(HK time)
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New York summer New York winter
7:00am - 3:00am 7:00am - 3:30am
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Public holidays
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Please contact the FX-MOPT Hotline on 2211 1688 or BEA Website at www.hkbea.com for details. |
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24-hour standard order monitoring. |
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Extensive currency choices and cross-currency combinations. |
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Customers can trade in major currencies (AUD, CAD, CHF, EUR, GBP, JPY, NZD, USD) and cross-currencies. | |
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| Trade Example |
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FX-OPT |
| An FX-OPT contract allows the option buyer to have the right, but not the obligation, to buy or sell a pre-defined amount of a currency against another, at a pre-defined exchange rate known as the strike price, at the end of a pre-defined period ends on the option expiration date. |
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FX-OPT Features |
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Leveraged trading: |
10 times the value of your margin deposit |
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Minimum contract amount: |
USD250,000 or its equivalent |
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Spot price: |
FX currency price traded in the spot market |
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Contract tenor: |
1 or 2 week, 1, 2, 3, or 6 month |
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Option premium: |
The price of an option that the option buyer will have to |
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pay the option seller in order to compensate the option seller's risk assumption |
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Option contract: |
Major currencies against the USD (AUD, NZD, EUR, |
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GBP, JPY, CAD, CHF) |
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Settlement arrangement: |
The expiry time of the contract is 2:00pm (HK time) on |
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the expiry date |
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Call option: |
A call option buyer will have the right to buy the |
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underlying currency pair |
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Put option: |
A put option buyer will have the right to sell the |
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underlying currency pair |
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European-style option: |
An option that can be exercised only on the expiration |
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date |
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"Plain Vanilla" option: |
A simple option that allows the buyer to choose to |
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exercise or not to exercise on the expiration date | |
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| Illustrations |
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Account Operation |
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Anyone 18 years of age or above can open an FX-MOPT account at BEA with a |
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minimum deposit of USD25,000 (or its equivalent). |
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Spot Foreign Exchange Contract can then be bought / sold. No physical movement of |
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funds actually takes place during trading. An FX option being exercised will generate FX transactions that are delivered to FX-MOPT accounts. Upon the closing of your FX position, the net balance representing your profit / loss is simply credited / charged to your settlement account. |
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There are no commission charges on transactions. |
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You can enjoy privacy and complete confidentiality when you enter your account |
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details and PIN when making transactions by telephone. |
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Detailed confirmation and statements are provided for reconciliation. |
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You can select from a wide range of currencies for margin deposits and earn interest |
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on your margin deposits. |
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Interbank spot market rates are used as reference to quote on all transactions. | |
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Enquiries |
| For details, please visit your nearest BEA location. With over 110 branches and SupremeGold Centres, BEA operates one of the largest banking networks in Hong Kong. |
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FX-MOPT Hotline : 2211 1688 | |
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| Remarks: |
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Participants should be aware of the risks associated with adverse movements in |
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exchange rates. It is therefore advisable that participants have a good understanding of the foreign exchange market and be able to keep abreast of market developments. The Bank of East Asia, Limited ("BEA") reserves the right to close a position in case of inadequate margin deposit. |
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When the margin deposit has dropped to 5% of the outstanding position, customers |
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are required to top up the deposits. BEA is not responsible for notifying customers. When a margin deposit has dropped to 3% of the outstanding position, BEA can reduce the gross open position in whole or in part by closing out the outstanding FX contracts in accordance with the size of the floating loss of the FX contracts in descending order, with the largest loss being the first. |
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Cancellation or amendment of orders and all dealing activities should be conducted |
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through the designated hotline. BEA is not responsible for adjusting a customer's order against his transaction. | |
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| Notes: |
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The above-mentioned information is for reference. It does not constitute an offer, or an |
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invitation to offer, or a recommendation to enter into any transaction. |
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BEA reserves the right to revise the features of the product at any time without prior |
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notice. | | |
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